3 EPA
                United Sti
                Environmental Protection
                Agency
             Office of
             Solid Warn and
             Emergency Response
DIRECTIVE NUMBER
                9375.1-06
                TITLE: Cooperative Agreements with Political
                    Subdivisions for Remedial Response


                APPROVAL DATE:  07/12/37

                EFFECTIVE DATE:  07/12/37

                ORIGINATING OFFICE:  OERR

                Q FINAL

                D DRAFT

                 STATUS:    I
            [ ]
            [
A- Pending OMB approval
3- Pending AA-OSWER approval
C- For review &/or comment
REFERENCE (other documents):
 Supplements Directive 9375.1-04
                             ]  D- In development or circulating
                                         headquarters
  OSWER      OSWER       OSWER
VE   DIRECTIVE    DIRECTIVE   Dl

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                             United States Environmental Protection Agency
                                    Washington. DC 20460

                  OSWER Directive Initiation Request
                                     1. Directive Number

                                       9375.1-06
                                   2, Originator Information
      Name of Contact Person

       Deborah Swichkow
     Mail Code
       WH-548E
Offio
  :6*ERR/HSCD
relei
      3. Title
           Award of Cooperative Agreements to Political Subdivisions
      4. Summary of Directive (include brief statement of purpose)


           Establishes procedures for providing  funding to political subdivisions to

           perform remedial activities through Cooperative Agreements.
       '' ^uperfund.CERCLA,State  participation,response agreements, procedures,  political
                                                                          subdivisions
      6a. Does This Directive Supersede Previous Directive(s)?
       b. Does It Supplement Previous Directive(s)?
                                              No
                                              No
         State Participation in the Superfund Program
                                                      Yes    What directive (number, title)
                      Yes    What directive (number, tftle) 9375.1-04
      /.^Draft Level


           A - Signed by AA/DAA
8 -- Signed by Office Director
       C - For Review & Comment
                                                                              D -- In Development
8. Document to be distributed to States by Headquarters?
X

Yes


No
                   OSWER Directives System Format Standards.
                  'ffice Directives Coordinator
                                 ves  Coordinator.
                                    Date    .


                                      g/W/7
                                    Dat£7  ,  / //„>*/
      10.
                                     s  Officer
      EPA Form 1315-17 (Rev. 5-87) Previous editions are obsolete.
   OSWER           OSWER               OSWER                O

VE     DIRECTIVE         DIRECTIVE         DIRECTIVE

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           NI :•£;-• 77ATE5 ENVIRONMENTAL PROTECTION AGENCY

                      WASHING TON. C.C. 20460
                           FEB I 2 1987
                                                 WASTE
MEMORANDUM

SUBJECT:  Cooperative Agreements With Pol i t i ca LgSubdi vi s i ons
          for Remedial Response (Directive NB .^37 5 . 1-6 )
FROM:     Henry L. Longest II, Director
          Office of Emergency and Remedia1 AifeTJft) n s e

TO:       Waste Management Division Directors
          Regions I through X


     Attached is the guidance for cooperative agreements with
political subdivisions (OSWER Directive 9375.1-6).  It provides
information to the Regions, States,.and political subdivisions
on the criteria, procedures and requirements for a political
subdivision lead for remedial activities at NPL sites.  This
guidance was developed via the Multi-Site Cooperative Agreement
(MSCA) Workgroup that included State representatives from the
Association of State and Territorial Soli a Waste Management
Officials as well as the Regions, the Office of Waste Programs
Enforcement, the Office of General Counsel and the Grants Admini
stration Division.  Draft guidance developed by the workgroup
was distributed to the Regions for their comment on October 7,
1986.

Background

     CERCLA section 104(d)(l.) authorizes EPA to enter into a
cooperative agreement with a State or political subdivision that
has the capability to carry out fund-financed response actions
taken at a site, but CERCLA requires States not political subdi-
visions, to provide the required section 104(c)(3) assurances.
While SARA retains the flexibility to enter into a cooperative
agreement with either a State or political  subdivision, it
increases State involvement during remedial response and still
requires a State to make the required assurances.  The guidance
describes two options for political subdivision-lead actions
that ensure State involvement during remed.ial response and
provide the mechanism for obtaining the State's  required
assurances.

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Guidance Summary

     EPA may enter into a cooperative agreeiient with a State
that intends to pass funds through to a political subdivision
that will actually perform the work.   This relationship is similar
to current State/contractor relationships and  is consistent with
40 CFR 33.250 requirements pertaining to intergovernmental agreements
between  State and local governments.   This is  the easiest way to
provide  assistance to a political subdivision  for its participation
during response and for obtaining a State's required assurances.

     The second option  discussed in the guidance permits EPA
to enter into a cooperative agreement with a political subdi-
vision and describes the three-party  contract  between EPA,
the State, and the political  subdivision necessary to ensure
State involvement during remedial response and to obtain t'ne
State's  required assurances.   The State can be awarded a
cooperative agreement for management  assistance.

Summary  of Comments on  Draft  Guidance

     Although the majority of commenters responded positively
to the use of a three party contract, two commenters were
concerned that such a mechanism would causo delays in performing
site activities since SARA requires more .--;oid clean up of sites.

     We  reexamined the  rationale for  regui'ing the use of the
three party contract and find it provides :;ie  best means of
ensuring coordination and legal  recourse for all  parties to
the contract.  Although development of the three party agreement
will  requira time, it is preferable to obtain agreement of
all three parties upfront rather than encounter disagreements
during the course of the project.  If a three party  agree in ent
is untimely or cumbersome, a  political suDdivision lead may
not be the best choice  for that particular site.

     For a cooperative  agreement to a State with a "pass through"
to a political subdivision, a commentar wanted EPA to have
approval authority over tha Intergovernmental  Agreement between
the State and the political subdivision.  This is inconsistent
with the Intent of intergovernmental  agreements developed in
accordance with 40 CFR  33.250 and with our guidance  that
encourages States to assume responsibility for managing fund-
financed actions consistent with applicable regulations and
program  requirements.

     For a cooperative  agreement directly with a political
subdivision, a commenter wanted EPA to require the State
to submit a written determination of  the validity of a political
subdivision as such.  This procedure is not necessary since
this determination is up to the State, not EPA.  The State

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would not transmit to EPA a request from an entity that did
not meet its definition of a political subdivision.  However,
it is EPA's responsibility to determine whether the political
subdivision is eligible for assistance and capable of carrying
out the response actions.-

     A commenter thought that the request for a cooperative
agreement with a political subdivision must come from the State
and suggested that a letter from the State approving the
subdivision lead would be sufficient.  This is the intent of
the guidance and it 'nas been rewritten for clarity.

     We agreed that due to resource requirements, it may be
difficult for the States to evaluate the political subdivision's
capabilities.  Therefore, the guidance has been changed to
provide the option of either the State providing the evaluation
of the political subdivision's  capabilities or the political
subdivision providing documentation of its capabilities to
EPA via the State.

     Several commenters suggested specific changes in the
guidance to reflect the situation in their particular Region.
We have developed the guidance  on a 1 e v e •  that is applicable
to all Regions and expect the Regions to cailor their imple-
mentation to the particular situation.  "ie actual title of
EPA's representative :nay vary from Regio" to Region depending
on the stage of development of  the draft cooperative agreement
and who is  designated to interact with the State.  This may
be the 3PM  or a different individual.  (Tire State Participation
Manual describes the roles of the RPM and the cooperative
agreement project officer.)

     A commenter requested that  we identify the roles of
the EPA RPM and the political subdivision representative as
well  as the State Project Officer.  In actuality, the RPM
role does not differ from the one he/she plays during the
development and execution of a  State-lead cooperative
agreemew-t or a Federal-lead SSC.  The role of the represen-
tative of the political subdivision is the same as that of
the State project officer during a State-lead remedial project.
A highly detailed list of duties and points of coordination
would not cover all the potential responsibilities for all
projects.  Therefore, we have indicated the general duties
of EPA's RPM and the political  subdivision's representative
in the guidance and have referenced that the details of
these roles can be found in the State-lead RPM manual.   It

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should be noted that although the political  3 j b d i vision has
the same type of involvement in coordination activities as
the State, it does  not  have all tie same responsibilities
as are required of  the  State.  These differing  State responsi-
bilities include provision of CERCLA'104(c)(3)  assurances,
concurrence in the  ROD  and deletion of the site from the NDL.

     Several  commenters asked for clarification of the
enforcement mechanism for a political  subdivision  lead
project.  These hava been described in the guidance and as
foilows :

     Under CERCLA section 104(d)(2), when EPA enters into  a
contract or cooperative agreensnt and  the recipient State  or
oolitical subdivision fails to  comply  with any  requiraments ,
EPA may seek  in the appropriate Federal  district court to
enforce the contract or agreement or to  recover any funds
advanced or any costs incurred  due to  breach of the contract
or agreement  by the State or political  subdivision.  Further-
more, the performance of the political subdivision on the
project can be enforced under the cooperative agreement.
The duties and responsibilities of EPA,  the  political subdivision
and the State are enforceable under the  tems of- the three
party contract.

     Additions or further clarifications •:  the guidance were
also  made in  response to comments that ac-dressed State
concurrence on the  ROD  and N P L  deletion, submission of the
community relations plans, and the quality assurance project
olans as well  as various minor  editorial changes  or additions.

Conclus i on

     Regions  are encouraged to  communicate with Headquarters
during the implementation of this guidance to ensure a
consistent national  approach.  Questions should be directed
to Jan B. Uine, Chief,  State Programs  Section,  or  Bobbie Lively-
Diebold at 382-2443.
Attachment

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                                                   . '. - 5
 Af'7ARD  OF  COOPERATIVE  AGREEMENTS  TO  POLITICAL  ST^DivisTOMS
A.  PURPOSE

    The ouroose of this auidance is to establish the
oolicv and procedures for providina fundina to political
subdivisions to perform remedial activities throuqh Coop-
erative Agreements.  The roles of EPA, the State, and the
oolitical subdivision are also discussed.  This guidance
is limited to award of Cooperative Aareements for remedial
planning and remedial i"nolementation activities, and does
not aooly to ore-remedial activities.   Exhibit 1 shows
those remedial activities that are eligible for political
subdivision lead.  The issue of a oolitical subdivision-
lead for removal activities will be considered after the
develooment of quidance for State-lead removal actions.
Political subdivision-leads for overseeing an enforcement
response may be considered after experience is gained with
State-lead enforcement activities conducted throuah
Coooerative Agreements.

    There are two mechanisms for orovidina funds to a
oolitical subdivision:

         A Coooerative Agreement with  the State with a
         "oass throuah"  to a politic?.'- subdivision, along
         with a two-partv Interaover-  -eatal Agreement
         orior to costs being incurred

         A Coooerative Aareement with  a oolitical sub-
         division with an enforceable  three-oarty contract
         that defines roles- and resoons ibi lit ies of all
       .  oarties, is amendable, and is the vehicle to oro-
         vide a State's CERCLA section 104fc)(3)
         assurances.

B.  BACKGROUND

    CERCLA section 104(d)(l)  authorizes EPA to enter into-'
Coooerative Agreements with oolitical  subdivisions of
States for resoonse actions taken under section 104.
Written guidance is intended to ensure a workable,
consistent accroach on a national basis for those
Reaions/States that find such an arranaement desirable.
Aporoval of a political subdivision-lead for remedial
activities is discretionary and reauires the full suooort
and aporoval of the aoorooriate State  agencv Director and
the EPA Regional Administrator.  CEPCLA as amended by the
Superfund Amendments and Reauthorization Act of 1986
(SARA)  permits oolitical subdivisions  that have the
                            -1-

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                                                               9375
                        EXHIBIT  1
            SUPERFUND  REMEDIAL  ACTIVITIES
        ELIGIBLE FOR POLITICAL  SUBDIVISION-LEAD
        T
FORWARD
PLANNING
     REMEDIAL
     PLANNING
         I
                                               RIFS
                                              REMEDY
                                             SELECTION
                                             REMEDfAt;
                                              DESIGN:;;.
     REMEDIAL
 IMPLEMENTATION
                                            REMEDIAL
                                             ACTION
                                            OPERATION
                                               AND
                                            MAINTENANCE
CERCLA fund-financed remedial action may be undertaken only at sites
on the final NPL; other activities may be initiated at any time after a site
is proposed for the NPL.
                                -2-

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                                                       93.7
necessary capabilities and jurisdictional authority to
have an active roie in directly managing response
activities; however,  SARA has assigned States a larger
role with.expanded responsibilities.   This emphasizes the
need to clearly delineate, in a legally binding manner,
the responsibilities  of EPA,  .the State, and a political
subdivision during fund-financed remedial response,
thereby offering adequate recourse to all parties.

C.  DEFINITION OF A POLITICAL SUBDIVISION

    What legally constitutes  a "political subdivision"
differs from State to State;  therefore, it is left to each
State to determine what unit  of government meets its
legislative definition of a political subdivision that may
qualify for assistance for Superfund response actions.

D.  COOPERATIVE AGREEMENT WITH THE STATE WITH A PASS
    THROUGH TO A POLITICAL SUBDIVISION

    A State-lead Cooperative  Agreement with a pass through
to a political subdivision is one method of funding a
political subdivision to perform a remedial activity.  The
State must enter into a two-party Intergovernmental Agree-
ment with the political subdivision that describes the
roles, responsibilities, and  timing :: actions by both
parties during the response activities.  This agreement
must be in place before the State or political subdivision
incurs costs for field activities.  Tr.a State retains the
ultimate responsibility for overseeing the activities of
the political subdivision and for ensuring that funds are
properly expended in accordance with statutory and regula-
tory requirements.  The State must comply with 40 CFR
Parts 30 and 33; the political subdivision also must com-
ply with 40 CFR Part 33.  EPA is not required to review
and approve the Intergovernmental Agreement.   The Inter-
governmental Agreement must be:

         Provided as an attachment to the State
         Cooperative Agreement application;

         Developed under a task in the workplan; or

         Required by a special condition in the
         Cooperative Agreement.
                             -3-

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                                                       937
E.  AWARD OF A COOPERATIVE AGREEMENT TO A POLITICAL
    SUBDIVISION

E.1  Application and Approval Process

    The request for designation of a political subdivision-
lead Cooperative Agreement must be made by the State
agency authorized by the Governor as the point of contact
with EPA on Superfund.   The draft Cooperative Agreement
application prepared by the political subdivision and
other required documents must be submitted to EPA by the
State.  Applications submitted directly to EPA by a poli-
tical subdivision will  not be acted upon by the Regional
Administrator.  The following process must be used for the
application and approval of a political subdivision-lead
Cooperative Agreement:

    1)   The designated State agency makes a formal
         request by letter to the EPA Regional Adminis-
         trator that a  political subdivision or other
         State agency be designated as lead for remedial
         activities at  a specific site or sites.  The
         request must include as attachments:

              A draft application for a Cooperative Agree-
              ment supplied by the political subdivision;

              The State's analysis or the political sub-
              division's capabilities based on the appro-
              priate criteria or documentation provided by
              the political subdivision to support that it
              possesses the required capabilities (see
              Section E.3) ;

              The State's acknowledgement that it under-
              stands it is responsible for all CERCLA/SARA
              section 104(c)(3) assurances; and

              Acknowledgement by both the State and the
              political subdivision that they will enter
              into a three-party contract with EPA.

    2)   The Regional Administrator, based on information
         in the State's request and the draft Cooperative
         Agreement application, will evaluate the merit of
         the State's request versus the merit of conduct-
         ing a Federal- or State-lead response.  The
         Regional grants office and RPM will review the
         draft Cooperative Agreement application to ensure
         conformance with applicable Agency  regulations
         and program requirements.  After this  review  is
         completed, the RPM, with input from the Regional
                             -4-

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         Counsel and the grants office,  will develop the
         draft Superfund State/Political Subdivision
         Contract (SS/PSC)  that defines  the roles,
         responsibilities,  and concerns  of  EPA,  the
         political subdivision, and the  State.

    3)   With the Region's  written approval for  a politi-
         cal subdivision-lead, the political subdivision
         will develop and submit to EPA  through  the State
         the final Cooperative Agreement application.   The
         draft SS/PSC will  be finalized  by  the  RPM based
         on input and agreement from the political subdi-
         vision and the State.  The political subdivision-
         lead designation becomes effective after all
         parties sign the three-party agreement  and the
         Award Official and the political subdivision  sign
         the Cooperative Agreement.

E.2  Superfund Comprehensive Accomplishments Plan (SCAP)

    The project being proposed for political subdivision-
lead must be on the annual  SCAP and the  lead designation
process should not delay the SCAP target dates.   Whenever
possible, the State should  determine the appropriateness
of a political subdivision-lead during the  SCAP  develop-
ment process and submit its formal written  request to  EPA
no later than six months prior to the planned project
start date.

    If the project has been placed or. the SCAP  with State-
or Federal-lead designation, the SCAP must  be amended  to
reflect the change in lead  to a political subdivision.

E. 3  Analysis of a. Political Subdivision's  Capabilities

    The analysis or documentation of a political subdivi-
sion's capabilities provided to the Regional Administrator
by the State or political subdivision in its application
must address:

         Jurisdictional responsibility of the political
         subdivision;

         Whether or not the political subdivision may  be
         considered to be a potentially  responsible party
         (PRP);

         whether or not the political subdivision has  a
         demonstrated history in addressing problems at
         the site;
                             -5-

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                                                       9 3 7 5 . 1 - 5
         Whether or not  the political  subdivision has
         experience in performing  work similar to that  to
         be funded in the Cooperative  Agreement;

         Whether the political subdivision will manage
         O&M,  regardless of who cleans up the site/-

         Whether direct  participation  by the political
         subdivision is  likely to  be more economical or
         efficient than  either a State- or Federal-lead;

         Whether the political subdivision has existing
         authority to conduct the  remedial activities;

         Whether the political subdivision has the exist-
         ing authority to enter into a Cooperative Agree-
         ment  with the Federal Government and the finan-
         cial  and management capabilities to administer
         Federal funds;

         Whether the political subdivision has an estab-
         lished liaison  role with  State and local agencies
         involved in problems at the site;

         Capability of the political subdivision to comply
         with  40 CFR Parts 30 and  33 (including an ac-
         counting system that accurately reflects costs
         and retains records for cose  recovery purposes;
         see Appendix U of the manua.  State Participation
         in the Superfund Program).

A political subdivision that is a  known PRP will not be
eligible for a Cooperative Agreement.

E.4  Preparation of a Political Subdivision's Cooperative
     Agreement Application

    The guidance on preparation of State Cooperative
Agreement applications in the manual State Participation
in the Superfund Program is applicable (with a few excep-
tions noted here) for use by the political subdivision in
developing its application.  The special conditions in
Appendix F of  the manual are applicable and should be
modified to reflect the political  subdivision-lead.
Exhibit 2 gives a checklist for attachments to the Coop-
erative Agreement package.  However, the State is respon-
sible for providing CERCLA section 104(c)(3) assurances at
the time of remedial action.
                             -6-

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                                         EXHIBIT 2
           CHECKLIST FOR COOPERATIVE AGREEMENT APPLICATION PACKAGE
1.     APPLICATION  FOR FEDERAL  ASSISTANCE


	   Part I-General Summary Information                •


	   Part El-Project Approval Information


	   Part Hi-Budget Information                        •
                                                     •



	   Part IV-Project Narrative Statement                 •
                                                     •


	   Pan V-Assurances
Part I, completed and signed

Part II, completed

Part HI, completed
Detailed budget breakdown, by site
and activity

Site background summary
Statement of work

Part V, completed (distinct from
CERCLA section 104(c)(3) assurances)
2.     ATTACHMENTS


	   Procurement System Certification

	   Intergovernmental Review Comments

	   Community Relations Plan (CRP) *

	   Quality Assurance Project Plan (QAPP)

	   Site Safety Plan *
ompleted EPA Form 5700-48

Comments included, as appropriate
       In some cases, these plans will be developed by the political subdivision following Cooperative
       Agreement award. When these plans are not attached to the Cooperative Agreement application, a
       special condition should accompany the award, requiring these plans to be in place prior to the
       initiation of field activities.
                                                -7-

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                                                9375
E.5  State Superfund/Political Subdivision Contract

    All political subdivision-lead Cooperative Agreements
require a three-party SS/PSC to be in place prior to
award.  The SS/PSC:

         Defines roles and responsibilities of EPA, the
         State, and the political subdivision

         Serves as the vehicle for substantial and mean-
         ingful involvement by the State in initiation,
         development, and selection of the remedial action
         to be undertaken

         Can be amended at each phase of response

         Can be amended to provide State CERCLA
         section 104(c)(3) assurances

         Is enforceable.

A topic outline for the SS/PSC is included as Exhibit 3.
The Cooperative Agreement is incorporated as part of the
three-party contract (SS/PSC).

    The RPM is responsible for devei.opi.ng the SS/PSC just
as he/she is responsible for developing an SSC used during
a Federal-lead remedial response,  "he RPM also is respon-
sible for managing the Cooperative Agreement and the
SS/PSC.

E.6  Relationship of the Superfund State/Political
     Subdivision Contract to the Cooperative Agreement

    The Cooperative Agreement is incorporated as part of
the SS/PSC by  reference.  The SS/PSC contains CERCLA/SARA
section 104(c)(3) assurances provided by the State, and
articles or provisions that relate to all three parties in
the contract (roles, responsibilities, timing, etc.  See,
Exhibit 3 and  Appendix H in the State Participation
manual).  The  Cooperative Agreement with the political
subdivision contains the provisions (special conditions)
specific to the project being funded (see Appendix F).
Exhibits 4 and 5 display the object class categories and
the appropriate level of detail for the itemized
Cooperative Agreement application budget.

E.7  Definition of Roles

    The SS/PSC must identify the EPA RPM, the represen-
tative of the  political subdivision and the SPO who will
interact with  each other during the fund-financed action.
The SPO will:
                             -8-

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                                                                                93'
                                    EXHIBIT 3
                   CHECKLIST FOR  ARTICLES  IN SUPERFUNO
                  STATE POLITICAL  SUBDIVISION  CONTRACT
GENERAL RESPONSE ARTICLES FOR  ALL ACTIVITY PHASES

            Authority
            Purpose of the Agreement
            Parties to the Agreement
            Designation of State, EPA, and Political Subdivision Project Officers
            Responsibilities of EPA, State, and Political Subdivision
            Coordination of Parties Participating in Response
            Duration of the Agreement
            Amendments to the Agreement
            State Involvement per NCP
            Reporting Requirements
            Submission of Documents
            Third Parties
            State Involvement in Community Relations
            Failure to Comply with Terms of the Agreement

RESPONSE AGREEMENT ARTICLES FOR  RI/FS

       •     Fund Balancing
            Site Access and Permits
       •     Acknowledgement of Provision of CERCLA Assurance by State
       •     Finding of No Significant Threat*

RESPONSE AGREEMENT ARTICLES  FOR REMEDIAL  DESIGN, REMEDIAL  ACTION,
AND  O&M

            CERCLA Section 104
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                                        EXHIBIT 4
        OBJECT CLASS CATEGORIES CONTENT REQUIRED FOR COMPLETING
                    COOPERATIVE AGREEMENT BUDGET SHEETS
 CATEGORY
 CONTENT - THE POLITICAL  SUBDIVISION
                MAY  INCLUDE:
Personnel
Costs of wages paid to political subdivision employees
who are engaged in response activities. (Calculated
either as a percentage of time or LOE basis.)
Fringe Benefits



Travel


Equipment
Materials and Supplies


Contractual Services
Construction
Other ERnct Costs
Indirect Costs
Fringe benefits for political subdivision employees,
calculated as a fixed percentage of salary or by some
other agreed-upon method.

Costs incurred by political subdivision employees for
travel necessary for the remedial activities.

Purchase price of necessary equipment which
the political subdivision furnishes, less its residual value
after project completion. If equipment costs are based
on usage rates, the costs are calculated by a
standard depreciation usage method or in
accordance with OMB Circular A-102, Attach. N. *

Purchase price c; any necessary materials
and supplies the political subdivision furnishes.

Costs associated with reimbursing contractor
services, including direct and indirect contractor
costs and a reasonable profit for personal
services and nonconstruction contracts. (See
40 CFR Part 33 and OMB Circular A-87.)"*

Costs associated with reimbursing contractor
services, including direct and indirect con tractor
costs and a reasonable profit for construction
contracts.  (See 40 CFR Pan 33 and OMB
Circular A-87.)**

Costs such as equipment rental, real property
purchase (see 40 CFR Part 30), and
miscellaneous costs.

The political subdivision may include indirect costs.
        See Appendix T of the manual State Participation in the Superfund Program for instructions for
        obtaining and disposing of equipment under Superfund Cooperative Agreements.

        In accordance with the Prompt Payment Act (PL 97-177), Federal funds
        may not be used for payment of interest penalties to contractors when
        bills are paid late.
                                              -10-

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                                                                        92" 5.
                               EXHIBIT 5
                      OBJECT CLASS CATEGORIES
              APPROPRIATE LEVEL OF DETAIL FOR ITEMIZED
            COOPERATIVE AGREEMENT APPLICATION BUDGET
  CATEGORY
                                 INFORMATION
Personnel
Fringe Benefits
Travel
Equipment
Materials and Supplies
Contractual Services
Construction
                           Positions of staff
                           Number of hours
                           Salary of staff (annual or hourly rate)
                           Estimates of personnel costs, by position

                           Basis (percentage or other) upon which
                           fringe benefits are calculated
                           Estimates of fringe benefit costs, by position

                           Purpose and estimated number of trips
                           Starting point and destination
                           Transportation method
                           Per Diem while on travel
                           Number of persons traveling
                           Estimated cost of trips

                           Special Supen'und conditions for purchasing
                           equipment *
                           Number and : .~pe(s) of equipment to
                           be purchased
                           Price of each piece

                           Type(s) of materials and supplies to be
                           furnished
                           Total prices

                           Estimated number of personal services
                           or nonconstruction contracts
                           Nature of contract services
                           Estimated total cost for each contract **

                           Estimated number of construction
                           contracts to be let
                           Nature of contract services
                           Estimated total cost for each contract **
   **
See Appendix T of the manual State Participation in the Superfund Program for instructions for
obtaining and disposing of equipment under Superfund Cooperative Agreements.

Estimates should allow for bid and activity contigencies.
                                      -11-

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                                                       9375. 1-5
    1)   Interact with the political subdivision and EPA;

    2)   Participate in the decision-making process at key
         junctures of the project;  and

    3)   Provide input into the remedy selection (ROD)
         process at the conclusion of the feasibility
         study.

The provision must discuss limitations and prerogatives of
each party for making minor agreement changes.

E.8  Required Points of Coordination

    The State is required, at a minimum,  to perform the
following activities:

         Review draft and final Cooperative Agreement
         applications and SS/PSC;

         Review all administrative reports, including the"
         quarterly progress and financial status reports;

         Review the draft and final RI/FS and comment on
         the proposed alternatives;

         Certify compliance with Sta:e standards;

         Concur in the remedy and the SOD (the same as for
         Federal-lead procedures);

         With EPA, determine the need to pursue enforce-
         ment actions against PRPs for conduct of the
         response actions;

         Review and approve all designs and specifications
         during remedial design, prior to remedial action,
         and design changes during remedial action;

         Concur in any substantive changes in the scope of
         work or project <5osts;

         With EPA, jointly inspect the remedy at the con-
         clusion of the remedial action;

         Accept the remedy;

         Concur in deletion of site from the  National
         Priorities List; and

         Other points as applicable.
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                                                       93'
The responsibilities of the RPM do not differ from those
during a State-lead Cooperative Agreement with an excep-
tion being the signature of three parties on the SS/PSC.
The responsibilities of the representative of the poli-
tical subdivision are the same as the SPO during a
State-lead Cooperative Agreement.  A detailed description
of duties and responsibilities of the RPM and SPO are
included in the Superfund State-Lead Remedial Project
Management Handbook, OERR, December 1986.

E.9  Cooperative Agreements with Political Subdivisions
     During RD/RA/O&M

    For RD/RA/O&M, the State must concur in the remedy
selected by EPA in the ROD.  The SS/PSC must state that
the political subdivision will undertake the response
activities and that this agreement is acceptable to all
parties.  The SS/PSC must be revised to include the next
phase of response and specifically to provide for a formal
acceptance of the remedy by the State before O&M com-
mences.  The SS/PSC must be amended to include the
section 104(c)(3) assurances and must be signed by all
parties before remedial action funds are obligated in the
Cooperative Agreement with the political subdivision.

E.10  CERCLA Section 104(c)(3) Assur ?-.ces

    The State is  responsible for prov:.ding the following
CERCLA section 104(c)(3) assurances:

         Cost share;

         Future O&M of the remedial action at the site(s);
         and

         Availability of an acceptable off-site disposal
         facility, if required.

Although the State is responsible for these assurances,
the political subdivision can share in the cost of the
action and manage the O&M at the site.

    Although the  State must recognize its responsibility
for CERCLA section 104(c)(3) assurances when it recommends
to EPA that a political subdivision undertake the lead,
these assurances  are not  required until the time of  reme-
dial action.  Prior to the initiation of the remedial
action stage of a project, the SS/PSC will be amended as
appropriate to convey the CERCLA section 104(c)(3) assur-
ances.  The amended contract must be executed and signed
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by all parties before remedial action funds are obligated
in the Cooperative Agreement with the political sub-
division.  The SS/PSC must address the assurances as
follows:

         Cost Share

              The State may provide its required match in
              cash payments directly to EPA or to the
              political subdivision who in turn provides
              the required services as match in the
              Cooperative Agreement; or

              The political subdivision may match on the
              State's behalf.  The SS/PSC must indicate
              that this is acceptable to all parties.

         Off-Site Disposal Facility.  If necessary, the
         State must secure an off-site disposal facility
         that the political subdivision can use in its
         request for bids to perform the remedial action
         and must provide this information as part of its
         assurances in the contract.

         O&M.  The State must agree to assume responsi-
         bility for O&M and may designate the political
         subdivision as its manager.  The State must agree
         to conduct the O&M if the political subdivision
         cannot fulfill all or part j: this obligation and
         must identify in the contract how it would do so.

E.11  Enforceability

    The political subdivision's performance on the project
can be enforced under the executed Cooperative Agreement.
The duties and responsibilities of EPA, the political
subdivision, and the State are enforceable under the terms
of the SS/PSC and the 40 CFR Part 30 provisions in the
Cooperative Agreement.  Under CERCLA section 104(d)(2), if
EPA enters into a contract or Cooperative Agreement and
the recipient State or political subdivision fails to
comply with any requirements of the contract or agreement,
EPA may seek in the appropriate Federal district court to
enforce the contract or agreement or to recover any
Federal funds advanced or any costs incurred due to breach
of the contract or agreement by the State or political
subdivision.
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F.   OTHER

    There can only be one lead for any one phase of re-
sponse in. the site project.   However,  in a political
subdivision-lead,  the State,  through an existing MSCA, can
request management assistance to defray the cost of its
coordination.  If  there is no MSCA in place, the State may
apply for a single-site Cooperative Agreement for man-
agement assistance.

    If a Cooperative Agreement (single-site or MSCA) is
awarded to the State for management assistance,  the
special conditions are specific to the activity being per-
formed under the Cooperative Agreement.  CERCLA
section 104(c)(3)  assurances can be provided through the
Cooperative Agreement for management assistance.
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