&EPA
              United States
              Environmental Protection
              Agency
            Office of
            Solid Waste and
            Emergency Response

DIRECTIVE NUMBER:  9250.2-01

TITLE:  Policy On Cost-Sharing Of Irmediate Removals At
     Publicly-Owned Sites
              APPROVAL DATE:  03/30/83

              EFFECTIVE DATE:  03/30/83

              ORIGINATING OFFICE:  OERR/OPM

              SFINAL

              D DRAFT

                STATUS:


              REFERENCE (other documents):

               Supplements
               9250.1-01 Policy On Cost-Sharing V. Pjblicly-
               Owned Sites
 OS WER       OS WER       OS WER
'E    DIRECTIVE    DIRECTIVE   D

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> 03/19/87 United States Environmental Protection Agency
Washington, O.C. 20460
EPA OSWER Directive Initiation Request
2. Originator Information
Name of Contact Person Mall Cod* Office
ENGLEBERT OERR/OPM
1. Directive Number
9250.2-01

Telephone Number
382-2441
3. Title
POLICY ON COST-SHARING OF IMMEDIATE REMOVALS AT
PUBLICLY-OWNED SITES
4. Summary of Directive (Include brief statement of purpose)
Specifically addresses cost-sharing for immediate
removal actions at publicly-owned sites. (5/5/83,
5 pp) Supplements
9250.1-1.
5. Keywords
SUPERFUND, CERCLA, COST-SHARE, PUBLICLY-OWNED SITE, POLICY
6a. Does this Directive Supercede Previous Directives)?) | yes | X| No What directive (number, title)
b. Does it Supplement Previous Directives^)? | X| yes | No Whatd
9250.1-0
7. Draft Level
A-SignedbyAA/DAA " B - Signed by Offlc* Director 1 C - For Review &(

This Request Meets OSWER Directives System Format
8. Signature of Lead Office Directives Coordinator
9. Name and Title of Approving Official
HEDEMAN

rectrve (number, title)
1

Comment In Development


Date
Date
05/05/83

OSWER     OSWER      OSWER
    DIRECTIVE    DIRECTIVE

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             UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                           WASHINGTON, D.C. 20460
                                                           OSWER Directive 9lSZ>. Z, -/
                                                                  OFFICE OF
                              MAY   5  'C~~             SOLID WASTE AND EMERGENCY RESPONSE
 MEMORA5DUM

 SUBJECT:   Policy on Cost-Sharing of Immediate Removals at Public^-Ovned Sites

 FROM:      William 5.  Eedeman,  Jr.,  Directc
           Office of Emergency  and Remedial Re/ponse  (WH-548)

 TO:        Addressees

     This  policy supplements my  "Policy on Cost-Sharing at Publicly-Ovned
 Sites"  signed on March 30,  1983  (Attachment l).  The March 30, 1983, guidance
 did  not specifically  address cost-sharing  for immediate removal actions at
 publicly-ovned sites.

 Background

     Section  10Mc)(3)  of CZRCLA (The Comprehensive Environmental Response,
 Compensation  and Liability  Act of 1980), provides that no remedial action
 vill be undertaken  unless the State  in  vhich the release occurs pays or
 assures payment  of  50  percent or more of the response costs associated vith
 facilities ovned by States  or their  political subdivisions ("publicly-ovned")
 at the  time of disposal of  any hazardous substances.  That is, the State
 must pay 50 percent (or greater)  of  all the costs of response, including
 costs associated vith  removal actions.  Hovever, the State does not have to
 pay this cost-share for immediate removals  until and unless remedial action
 is subsequently  funded  at the site.

 Policy;

     We vill  not  require any State cost-share  for immediate removals at
publicly-ovned facilities until  a CERCLA remedial action is subsequently
 funded at  the site.  If a remedial action  is  never funded at the site, then
there is no cost-share  for the immediate removal action (see Attachment 2).

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  OSWER  Directive 9
Implementation:

     The Regional Program Office responsible for the removal activity mist
communicate this policy to the State prior to commencement of the removal
action.  Verbal communication should be followed by a letter to the State
reiterating our policy.

     If you have any questions, contact Doug Cohen of ny staff, at FTS-382-2206.

Attachment

Addressees;
Environmental Services Division Directors, Regions I, III, V, VII & X
Regional Superfund & OHM Coordinators, Regions I-X
Director, Air and Waste Management Division, Region IV
Director, Toxic Waste Management Division, Region IX

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'v^-:-;
                                     ATIACEIOT 1

                                     S 30
                                                                            OF
                                                            IOUO WASTE AND EMEHOENCV
        MEMORANDUM
        SUBJECT:    Policy on Cost-Sharing at Publicly-Owned Sites

        FROM:  -    William N. Hedeman, Jr., Director
                   Office of Emergency and Remedial  R

        TO:         Regional Superfund Coordinators
                   Regions I-X


        Background;

            Section !04(c)(3)(C)(11) of CERCLA (The Comprehensive  Environmental
        Response, Compensation and Liability Act of  1980),  requires States to pay
        50 percent or more of the response costs associated with  facilities owned
        by States or their political subdivisions ("publicly-owned")  at the time
        of disposal of any hazardous substances.

        Policy;

            The'following 1s EPA policy on section  I04(c)(3):

            1.    States are required to pay 50 percent  or more  of response
                  costs for publicly-owneo facilities.~~

                  OERR'S general policy is to require only a ?Q  p*-cont ea*t-
        share at these facilities.  If the Regional  Administrator (RA) believes
        that a State should pay greater than a 50 percent share,  based upon the
       .degree of responsibility of the State or Its political subdivision, the
        RA should Indicate the suggested share and justification  for  it.  This
        recommendation should be Included as an attachment  to the Action Memo
       package the Region submits to Headquarters.

            2.    The cost-share for facilities which become publicly-owned after
                  "active" disposal ceased Is 10 percent.-

                  Tht language of 104(c)(3) Indicates that the State share is
       50 percent of all response costs if the State or  one of Us subdivisions
       owned the facility "at the time of disposal." Where a State  or local
      'government acquires a s1t after^hazarojoj^ ^nh
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possession 1n order to provide security, *1t1gate an emergency, accomplish
a response action or act as a receiver 1n a bankruptcy proceeding.
Imposition of a 50 percent cost-share would discourage States from  taking
possession of a facility 1n these and similar circumstances and would
make 1t more difficult for States to meet their cost-share.

           Therefore, the State 1s required to pay 10 percent of remedial
costs at facilities which became publicly-owned after active disposal  has
ceased.

     I realize that some site actions have been delayed pending resolution
of this Issue.  Please Implement this policy as soon as possible to
alleviate any further delay.

     If you have any questions on our State cost sharing policy, contact
Doug Cohen of my staff at FTS 382-2206.

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                                                              Directive
?-;
                                 ATTACHMENT 2
(l) .Site X (publicly-owned)-  $200,000  immediate  removal  funded  by  CERCLA
     and there vill be  no  further  action  at the site ~ State  is not required
     to cost-share.

(2)  Site X (publicly-ovned)-  $200,000  immediate  removal  is funded  by CZRCLA
     and remedial action may be  subsequently  funded.  At  this  time, State is
     not required to pay cost-share.  Hovever, prior to the commencement  of
     the remedial action,  the  State must  assure payment of the cost-share
     associated vith response  at the site.


           $   200,000  removal
           1,500,000  re=edial
          $1,700,000  response costs  State oves 50 percent  (or greater) of
                                        $1,700,000 ($850,000).

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