5EPA
Environmental Protection
Agency
Off ice of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER:
9375.1-4-T
TITLE: STATE PARTICIPATION IN THE SUPERFUND PROGRAM,
- Volume 1, Appendix T: Obtaining and Disposing of
Equipment Underc a CERCLA Cooperative Agreement
November 21, 1986
November 21, 1986
OERR/HSCD/SRCB
APPROVAL DATE:
EFFECTIVE DATE:
ORIGINATING OFFICE:
Q FINAL
D DRAFT
STATUS:
REFERENCE (other documents):
9375.1-4 STATE PARTICIPATION IN THE SUPERFUNO PROGRAM,
Volume 1
OSWER OSWER OSWER
VE DIRECTIVE DIRECTIVE Dl
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SEPA
United States environmental Protection Agency
Washington, DC 20460
OSWER Directive Initiation Request
1. Directive Number
9375.1-4-T
2. Originator Information
Name of Contact Person
Deborah Swichkow
Mail Code
WH-548-E
Office
OERR/HSCD/SRCB
Telephone Number
(202) 382 2453
3. Title
STATE PARTICIPATION IN THE SUPERFUND PROGRAM, Volume 1, Appendix T: Obtaining and
Disposing of Equipment Under a CERCLA Cooperative Agreement
4. Summary of Directive (Include brief statement of purpose)
Explains requirements for obtaining and disposing of equipment under CERCLA cooperative
agreements. It also addresses the types of equipment that would be used during pre-
remedial and remedial actions.
5. Keywords
Superfund, CERCLA, State participation-, cooperative agreements, equipment
5a. Does this Directive Supersede Previous Directive(s)? |(X| Yes | | No What directive (number, title)
9375.1-4-T, Same title, 8/85
b. Does It Supplement Previous Directives)? Q Yes Q No What Directive (number, title)
9375.1-4 State Participation in the Superfund Program, Volume 1
7, Draft Level
LJ A Signed by AA/DAA LJ B Signed by Office Director LJ C For Review & Comment LJ In Development
his Request Meets OSWER Directives System Format
3. SignatureofLeartX
/ ^^^ '
tf ice Directives Coordinator
1. Name and Title of Approving Official *
Sam Morekas, Chief, State & Regional Coordination Branch
Date
DEC 4 1936
Date
11/21/86
OS WER OS WER OS WER
DIRECTIVE DIRECTIVE ,
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
Mr!\/ 9 I few* OFFICE OF
"l-'» t I 1986 SOLID WASTE AND EMERGENCY RESPONSE
MEMORANDUM
SUBJECT: Final Addendum to the Manual State Participation in
the S u pei-fund Program -- Appendi x T~t"Obtaining and
Disposing of Equipment Undej* a. CERCLA Cooperative
Agreement" /'/ -:
F*ROM: Sam Morekas, Chief V'' A <- £ ^-( ''' " ~)
State and Regional/coordination Branch
Hazardous Site Control Division
TO: Mailing List
The attached revised Appendix T has been expanded to explain
the requirements for obtaining and disposing of equipment under
CERCLA Cooperative Agreements. It addresses the types of equipment
that would be used during pre-remedial and remedial planning
activities, and remedial actions (equipment/property to implement
and monitor the remedy). Equipment that is in itself the remedy
is also addressed.
The version of Appendix T that you currently have should be
discarded and replaced with this attachment. He would appreciate
your written comments concerning any problems incurred in the
application of this appendix or your operational experience.
Please direct these comments to Bobbie Lively-Diebold of my staff.
Attachment
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APPENDIX T
OBTAINING AND DISPOSING OF EQUIPMENT UNDER A
CERCLA COOPERATIVE AGREEMENT
PURPOSE
This appendix is provided to explain the requirements
for obtaining and disposing of equipment under CERCLA
Cooperative Agreements, both general regulatory
requirements and those that apply solely to CERCLA (40 CFR
Part 30 and Chapter 26 of the Assistance Administration
Manual). The appendix discusses several options for
obtaining equipment for use on fund-financed projects,
including CERCLA-funded purchase. It is intended to
address the types of equipment that would be used during
pre-remedial and remedial planning activities, managing
remedial action, and remedial actions (equipment/property
to implement and monitor the remedy). Equipment that is
in itself the remedy is addressed as well.
BACKGROUND
The trust fund established by CERCLA requires that
funds be awarded to a State under a Cooperative Agreement
on a site-specific basis. For remedial activities, equip-
ment costs and use must be carefully documented on a
site-specific basis to support recovery of costs from re-
sponsible parties. For pre-remedial activities, equipment
use and costs must be documented by the Superfund account
number for pre-remedial activities. These CERCLA program
requirements apply in addition to other regulatory
requirements that govern the purchase, management, and
disposition of all equipment using Federal funds.
APPENDIX SUMMARY
This appendix contains guidance on obtaining, using,
and disposing of equipment under a CERCLA Cooperative
Agreement. While the major focus of the guidance is on
State purchase of equipment with CERCLA funds, other op-
tions for obtaining equipment also are discussed.
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The appendix is presented in six sections:
Options for obtaining equipment
CERCLA-funded equipment purchase
Remedial actions where equipment is the remedy or
part of the remedy
EPA evaluation and review of CERCLA-funded equip-
ment purchase
Equipment disposition
Additional information.
For remedial work, States must allocate and document
equipment costs on a site-specific basis. For
pre-remedial work, States are not required to allocate and
document equipment costs on an individual, site-specific
basis. Instead, they must allocate and document pre-
remedial purchase, lease, or use of equipment to the
Superfund account number for pre-remedial activities.
This is because all pre-remedial. work is covered by one
Superfund account number, whereas for remedial work every
site is assigned a unique account number. Otherwise, the
Cooperative Agreement requirements and criteria for justi-
fying equipment purchase are basically the same for pre-
remedial and remedial work.
The reader should note that acquisition procedures may
vary depending on the cost of the requested equipment.
EPA's General Regulation for Assistance. Programs and
Procurement under Assistance Agreements (40 CFR Parts 30
and 33, respectively) prescribes different procedures for
items costing less than $1,000, those costing at least
$1,000 but less than $10,000, and those costing $10,000 or
more. This appendix explains these procedural differences.
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1. OPTIONS FOR OBTAINING EQUIPMENT
When a State identifies the need for equipment to con-
duct a particular activity, it often attempts to purchase
the equipment under a Cooperative Agreement with CERCLA
funds. Purchasing expensive equipment that has an exten-
sive life can be difficult to justify under a CERCLA
Cooperative Agreement, however, and may require the use of
complex accounting procedures once the equipment has been
purchased. For this reason, when the cost of the proposed
equipment would exceec $10,000, EPA encourages States to
consider the options xisted below before attempting to
purchase the equipment with money from the trust fund.
Major alternatives available are:
Purchase the equipment with State funds and
charge a usage rate to EPA
Lease the equipment using CERCLA funds
Procure a contractor to accomplish the task using
CERCLA funds.
Purchasing equipment with State funds, with subsequent
charge for usage to EPA, requires less analysis and de-
tailed cost documentation than does leasing the equipment
under a CERCLA Cooperati e Agreement. From an administra-
tive basis, both options are simpler than State purchase
of the equipment using CERCLA tunds because they avoid the
issue of disposition (discussed in Section 5.A of this
appendix).
Leasing equipment u ing CERCLA funds is an option for
pre-remedial and remedial planning activities. For trans-
portable or mobile treatment systems used during remedial
action, the State must procure a contractor who has the
appropriate equipment to conduct the work. Example of
transportable or mobile treatment systems include thermal
destruction, biologic or physical-chemical units. Procur-
ing a contractor to do the work involves different admini-
strative requirements that are explained in Procurement
Under Assistance Agreements (40 CFR Part 33) and other
parts of this manual. All three alternatives are dis-
cussed in more detail below.
A. State Purchase
State purchase of equipment using State funds is the
simplest mechanism to implement. If the State uses this
option, it may charge EPA for time the equipment is used
on projects conducted under CERCLA Cooperative Agreements,
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based on a calculated usage charge rate (e.g., $/hour of
operation or $/sample). The resulting cost would then be
included in the Cooperative Agreement application budget.
Once the State calculates a charge rate and EPA agrees to
it, the State can include this rate in every project for
which the specific piece of equipment will be used.
A sample calculation of an equipment usage charge is
given in Exhibit T-l, on the following page. (The figures
are not representative.) .A State would use this method to
calculate and charge for equipment use on all of its
CERCLA and non-CERCLA (other EPA, Federal, or State)
projects. Usage charge rates should be reviewed periodi-
cally by the State to ensure that total charges for an
item of equipment do not exceed the costs actually
incurred.
B. CERCLA-funded Leasing*
If the State plans to lease the equipment using CERCLA
funds during pre-remedial and remedial planning activi-
ties, it must ensure that this is a cost-effective way to
achieve the desired results. Leasing arrangements must
allow for site-specific allocation of costs. For example,
when leased equipment is used for pre-remedial activities
and/or at several remedial sites, the State must allocate
the monthly leasing costs based on the proportional use of
the equipment at each remedial site or for pre-remedial
activities. It must then draw down funds from those
specific account numbers. It: the equipment is used on
additional sites the next month, the State would again
allocate the lease cost according to trie relative usage
and would draw down funds from the specific site or
activity accounts accordingly.
C. C£RCLA-funded Procurement of Contractor Services
Instead of the State acquiring or leasing equipment to
conduct site or project tasks, it may procure a contractor
who has the appropriate equipment to conduct the work.
This procurement method must be used when transportable or
mobile treatment systems (e.g., thermal destruction, bio-
logical or physical-chemical units, etc.) are required
during remedial action. Procurement of contractor ser-
vices is addressed in 40 CFR Part 33 and in Volume II of
this manual.
As an alternative to simple lease or purchase of the
equipment, tne State may pursue a lease-purchase
arrangement; however, the State must assume all extra
costs and risks associated with such an arrangement.
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EXHIBIT T-1
SAMPLE USAGE CHARGE CALCULATION
Equipment cost = $ 95,000
Estimated maintenance cost over life of equipment* = $ 5.QOQ
Total cost = $100,000
Average life of equipment (estimated by manufacturer = 10.OOP hours
or association; documentation for this figure should
be submitted to EPA)
Usage charge ($100,000/10,000 hours) = $10 per hour
Intended use of equipment on State-lead project #1 = 1.000 hours
Equipment charge in Cooperative Agreement for = $10,000
project #1 ($10x1,000)
(State should explain the calculations in its Cooperative Agreeement application.)
Maintenance costs are included here for convenience. Maintenance costs may be included in this calculation
only if such costs are not included in the State's indirect cost rate.
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If, however, a CERCLA-funded contractor obtains equip-
ment for which the State or EPA will retain title, as
stated in the Cooperative Agreement, all of. the require-
ments for CERCLA-funded equipment purchase, discussed in
Section 2 of this appendix, apply (see 40 CFR 30.537).
2. CERCLA-FUNDED EQUJ PMENT PURCHASE
Equipment purchase is an allowable cost under a CERCLA
Cooperative Agreement if the purchase is the most cost-
effective way of obtaining the equipment and the State can
account for use of the equipment on a site-specific basis
or, for pre-remedial activities, by the Superfund account
number. States must meet the following criteria in order
to purchase equipment:
Equipment vital to the project(s) cannot be rea-
sonably obtained through State purchase,
CERCLA-funded leasing, or contractor services.
The projected use of the equipment is sufficient
to account for the majority of the equipment's
useful life, either on one project alone or by
allocating the usage and costs to several pro-
jects under one MSCA or the PA/SI account.
Specific procedures for justifying the purchase are dis-
cussed below.
A. Justification for Purchasing Equipment Under a CERCLA
Cooperative Agreement
Before it can buy equipment using CERCLA money, the
State must:
Demonstrate that the equipment is required for
the project
Determine that purchase of the equipment is the
cost-effective method of obtaining that equip-
ment, given that it cannot be obtained through
purchase with State funds, by leasing under
CERCLA, or by securing contractor services
Provide justification for the purchase and
supporting documentation in the Cooperative
Agreement application.
For a remedial action where equipment is itself all or
part of the in-place remedy, the Record of Decision (ROD)
is considered to be adequate documentation to support
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equipment purchase. Both purchase with State funds and
CERCLA-funded procurement of contractor services and
equipment are viable alternatives where equipment is all
or part of the remedy. This is discussed further in
Section 3 of this appendix.
B. Cost-Effectiveness Comparison
When equipment is available from other sources, the
State must: (1) show that the equipment is necessary for
the project, as above, and (2) for equipment costing
$1,000 or more, compare the cost-effectiveness of the
proposed CERCLA-funded purchase to the other methods for
obtaining the equipment. This comparison must address the
following items:
Expected life of the equipment (e.g., number of
hours of operation, number of samples that can be
run, number of months or years that it will be
used)
Expected use on the project(s) to which it will
be charged (using the same measures as above)
The costs of acquiring, operating, and maintain-
ing the equipment through CERCLA-funded purchase
as opposed to otter methods for obtaining the
equipment.
In its cost-effectiveness comparison, the State must con-
sider use of the equipn 5nt only on CERCLA projects that
have been funded or are on the approved Superfund Compre-
hensive Accomplishments 'Ian (SCAP). The cost-effective-
ness comparison must not include anticipated use of the
equipment on non-CERCLA projects or on CERCLA projects
that are not yet included on an approved SCAP.
For equipment with a unit cost of $10,000 or more, the
State must submit the cost-effectiveness comparison to the
Award Official for review and approval as part of the
Cooperative Agreement application. For equipment with a
unit cost of less than $10,000, the comparison need not be
submitted for approval but must be available for EPA
review, if requested. Regardless of cost, all equipment
purchases must be included in the signed Cooperative
Agreement budget.
C. Documentation in a Cooperative Agreement
To justify CERCLA-funded equipment purchase, the
Cooperative Agreement application must include the
following:
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9375.1-4-t
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A thorough, written justification and
cost-effectiveness comparison for purchases
$10,000 and over.
A list of all pieces of equipment to be purchased
and the price of each piece.
A description of the charge rate to allocate the
costs (if the equipment to be purchased costs
$10,000 or more and will be used on more than one
project), calculated as in Exhibit T-l.
A provision that the State will:
Properly allocate the cost of the equipment
among the projects on which it is used
Accurately document the use of the equipment
Solicit and follow EPA's instructions on
disposal of the equipment after the proj-
ect's completion.
A sample provision may be found as Exhibit T-2, on the
following page, and in Appendix F.
D. EPA Evaluation and Review of CERCLA-funded Equipment
Purchase
EPA will conduct several reviews/evaluations of the
State's purchase and use of equipment under a Cooperative
Agreement. Prior to award, EPA will evaluate the State's
justification before approving the purchase. Equipment
purchases under the Cooperative Agreement are reviewed in
the normal course of any audit to ensure that the purchase
conforms with that approved for the project by the Award
Official.
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EXHIBIT T-2
Sample Provision for Equipment Purchase in an MSCA
EPA authorizes purchase of the equipment identified in
the State's application dated [ ].
Equipment approved for purchase under this Agreement
is authorized for use only on the pre-remedial [and/or
response] activities and/or sites specified herein.
The State agrees to allocate equipment costs among the
pre-remedial [and/or response] activities and/or sites
in proportion to the equipment use on each and to
document all use. For equipment costing more than
$10,000, the State agrees to submit a formula for
allocating costs for equipment use. If the State in-
tends to use the equipment for pre-remedial [and/or
response] activities and/or sites outside the scope of
this Agreement, the State agrees to obtain prior ap-
proval from the EPA Award Official. Furthermore, the
State understands that at the end of the work author-
ized in this Agreement, EPA shall give the State
instructions on the disposition of the equipment.
Disposition may entail returning the equipment to EPA
or reimbursing EPA for EPA's share of the equipment's
residual value.
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3. REMEDIAL ACTIONS WHERE EQUIPMENT IS THE REMEDY OR PART
OF THE REMEDY
Where equipment is itself the remedy or is an inher-
ent, in-place part of the remedy, the ROD is the necessary
justification for the equipment. Therefore, no additional
analysis generally is required. The Cooperative Agreement
should cite the ROD as the supporting documentation. The
remainder of the State's documentation and EPA's review
should follow the procedures described in Sections 2.A
through 2.D.
There are basically three situations where the provi-
sion of equipment may constitute a complete or partial
remedial action:
Equipment that is permanently installed for use
at one site
Equipment that is moveable and can be used inter-
mittently or sequentially at more than one site
Equipment that is installed as a component of a
remedial service provided to individuals.
Fixed, in-place equipment that can be used only at one
site does not impose any unusual acquisition, allocation,
or accounting requirements on the State. Title to the
equipment vests with the State after certification that
the equipment is functional and operational.
Transportable or mobile treatment systems (thermal
distribution, biological or physical-chemical units, etc.)
are provided by the contractor as part of the bidding/
procurement process and the project is billed through a
usage charge rate. The title to the transportable or
mobile equipment vests with the contractor; thus, the
State does not have disposal responsibility.
Remedies that involve services to private individuals
may include equipment, but do not raise the problem of
acquisition or disposal. For example, a State may provide
water to homeowners at a site by digging new private
wells, relocating the well-field, or by providing hookups
to an existing water distribution system. In these cases,
the State has not disposed of Federal property (i.e., the
pipes, lines, or pumps purchased with trust fund money),
but has provided a service.
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4. ACCOUNTING PROCEDURES FOR USE OF THE EQUIPMENT
All equipment cost allocations must be carefully docu-
mented, both for possible cost recovery and for audit pur-
poses. The State also is required to follow the standards
for property management in 40 CFR 30.531. As projects are
completed, EPA will audit the accounts, reviewing the rec-
ords of any equipment purchased to ensure that the State
obtained EPA authorization for the purchase and documented
and allocated costs properly.
Funds in a Cooperative Agreement are obligated to a
"9ZZ" account for equipment purchase rather than the
activity code identifier such as L, N, R, etc. The "9ZZ"
code immediately identifies that the amount is for
equipment purchase.
A. Single-site Cooperative Agreement
Equipment purchased for a site-specific project is
usually limited to that used during remedial action as an
in-place remedy for the life of a project. This does not
present a problem in accounting since the Region obligates
the funds for initial purchase of the equipment to the
"9ZZ" account and the State does not have to account for
use of the equipment on a ly other project/site.
B. Use .on More Than One Site
When the equipment can be used on more than one site,
different procedures ar > used for pre-remedial accounting
than for an MSCA or a combination of remedial and pre-
remedial activities as described below.
B.1 Pre-remedial Activities
When equipment costing $10,000 or more is used
strictly for pre-remedial activities, the Region obligates
the funds for initial purchase of the equipment to a "9ZZ"
account. The same account number is used for all pre-
remedial activities; therefore, the State does not have to
account for proportionate usage on a site-specific basis.
B.2 Sites in an MSCA or Combination of Pre-remedial and
Remedial Activities
For equipment costing at ~least $1,000 but less than
$10,000, the State must estimate the equipment's propor-
tionate usage for each CERCLA remedial site in an MSCA or
for pre-remedial activities and/or each remedial site and
must request that the proper amount be obligated to each
account. Equipment costing $10,000 or more requires more
complicated accounting procedures.
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When equipment costing $10,000 or more is to be used
at more than one remedial site in an MSCA or is used for
both remedial and pre-remedial activities, the following
procedures apply:
The Region obligates funds for initial purchase
of the equipment to a "9ZZ" account (the last
three digits in the Superfund account number.)
The State must charge initial purchase of the
equipment to the "9ZZ" account, which enables the
State to purchase the authorized equipment with-
out initially charging the cost to a specific
site. (All sites or activities for which the
equipment will be used must be under the same
MSCA.)
The State must have established a usage charge
rate for the equipment. (See the example of
usage charge rate calculation in Exhibit T-l.)
EPA must approve the method of allocation as part
of the authorization for the purchase.
Each Federal fiscal quarter the State must apply
the EPA-approved usage charge to calculate the
equipment cost allocable to pre-remedial activi-
ties and/or each site in the MSCA. In its quar-
terly technical progress report the State must
show the amount of equipment cost that should be
charged to each account as well as the total
amount that should be removed from the "9ZZ"
account. (The format shown in the second box of
Exhibit T-3 may be used.)
The EPA RPM or Project Officer will review the
proposed charges detailed in the quarterly
progress report and, upon concurring, will sign
the report and forward it to the Regional
Assistance Administration Unit. After recording
the changes to the site budgets in the official
Cooperative Agreement file and sending a copy of
the revised budgets to the State for its files,
the Assistance Administration Unit will sign the
quarterly technical progress report and will
forward it to the Regional Financial Management
Officer (FMO). The FMO will transfer the
indicated obligations and disbursements from the
"9ZZ" account to the appropriate site-specific
accounts.
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Exhibit T-3, on the following page, presents a
hypothetical accounting situation. Since the equipment in
the example is to be used at five sites, the initial pur-
chase of the equipment is charged to the "9ZZ" account*.
The first box in the example shows the Superfund account
number for the initial purchase of the equipment. The
second box shows how the State records its use of the
equipment in its quarterly progress report. After the
first quarter, equipment costs are allocated to the site/
activity-specific account numbers, and $92,500 remain in
the original "9ZZ" account.
Funds remaining in the "9ZZ" account for the purchased
item at the end of the equipment life should be small.
After any final adjustments for residual value are made
between the site/activity-specific and the "9ZZ" accounts,
the balance in the "9ZZ" account for the purchased item
should equal zero. If there is a significant positive or
negative balance in the "9ZZ" account, EPA and the State
will jointly adjust the amounts charged to the projects on
which the equipment was used.
The RPM or Project Officer, in conjunction with the
Regional Assistance Administration Unit, should determine
whether the balance remaining warrants adjusting the
amounts charged. As a guideline, a positive or negative
balance of 10 percent of the purchase price or more may be
considered to be significant for these purposes. Adjust-
ment of the accounts is probably best accomplished by
multiplying the percentage of the equipment's life used
for each site or pre-remedial activity account by the
remaining balance in the "9ZZ" account and allocating
(crediting or subtracting) that amount to each of the
site/pre-remedial activity accounts.
More information on account numbers is given in
Appendix N.
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EXHIBIT T-3
ACCOUNTING EXAMPLE FOR MSCA
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H
I
HYPOTHETICAL SITUATION:
Initial Cost of Authorized Equipment
Estimated Equipment Life
Usage Charge ($100,000/5,000 hours)
State's Justified Usage
Number of Sites/Projects Using the Equipment
PROCEDURES:
Obligate funds for equipment to the account number ending in "9ZZ"
$100,000
5,000 hours
$20/hour
4,250 hours
RI/FS at 5 NPL sites
Example Translates to:
Fiscal Year 1985
Ten-Digit Account Number
5JTA01 9ZZ
Superfund Program Element Number
Allowance Holder is Region 1
Regional Identifier / Responsibility Center
Activity Code (i.e., 9 for initial obligation, J, L, N, R, or S for subsequent distribution)
Site-Specific Account; Site Not Identified
Record information in State's quarterly report based on use per site
$100,000
Initially in
5TFA01_9ZZ
Superfund Account Numbers Use Purina First Quarter
_ 5TFA01 L12 = 80 hours x $20/hour = $ 1.600 _
f 5TFA01 L13 = 110 hours x$20/hour = $2,200 1
C 5TFA01 L21 = 150 hours x $20/hour = $3,000 >
1 5TFA01_JZZ = 25 hours x $20/hour = $ 500 J
oirAOi HI 2 - iu nours x $£U/nour = $ 200
$92,500
Remaining in
5TFA01_9ZZ
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5. EQUIPMENT DISPOSITION
All purchased equipment must be disposed of properly
when it is no longer needed for the project. This section
contains both general procedures and those that should be
used when the equipment is all or part of the remedy.
A. General Disposal Procedures
At the end of a project period or at the time of
Cooperative Agreement closeout, the State must submit an
Inventory Report that describes the present condition of
each item, and must request EPA to provide disposition
instructions. The State also can make disposition
recommendations in this report.
If the equipment has residual value at the end of the
project(s), EPA will direct the State to take one of the
following actions:
Obtain EPA's approval to use the equipment on
other CERCLA projects (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
market value
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 pro-
portionate share of the current fair market value.
EPA retains the right to take title to equipment (40 CFR
30.530(G)); other options are available if EPA does not
exercise this right. In any case, the State must agree to
follow EPA's instructions in disposing of the equipment at
the end of the project(s).
The State may acknowledge this either by including an
appropriate assurance in its Cooperative Agreement appli-
cation or by accepting EPA's special condition in the
award (a sample provision is shown in Exhibit T-2).
Further requirements for equipment disposition are given
in 40 CFR 30.532. The first paragraph of 40 CFR 30.532,
which authorizes State use of purchased equipment at other
EPA or Federal projects without any reimbursement to the
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Agency, does not apply to equipment purchased with CERCLA
funds because of the limitations on the trust fund
described earlier.
B. Disposition of the Equipment That Is the Remedy or
Part of the Remedy
The nature of the equipment that is the remedy or part
of the remedy will determine both the need for disposal
instructions and the type of instructions given. Equip-
ment types, and a description of each, are:
Equipment that is used at only one site: When
the remedy involves equipment that cannot be used
at another site but may have residual value, the
State must obtain disposition instructions from
EPA. In some cases, the practical problems of
physical removal from the site may make it
necessary to leave the equipment in place, (e.g.,
extraction wells that are no longer needed). The
State should perform a cost-effectiveness analy-
sis comparing removal of the equipment with
having it in place. Disposition instructions
should explicity address equipment left on
private property.
Equipment that is moveable and can be used
intermittently or sequentially at more than one
site: Transportable/mobile treatment systems
(thermal destruction, biological or physical-
chemical units, etc.) are provided by the con-
tractor and title to this equipment is vested
with the contractor. These systems are removed
by the contractor when their use is no longer
required; therefore, disposition instructions are
not required.
Equipment that is installed as a component of a
remedial service provided to individuals: Since
this equipment is installed as a necessary and
integral component of the remedial service being
provided, disposition instructions are not
required.
Equipment that is all or a part of the remedy can be
disposed of at two points in the response: (1) when the
Cooperative Agreement under which it was purchased is
closed out, and (2) when the equipment is no longer needed
for the remedy. These are discussed below.
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B. 1 Closeout of the Cooperative Agreement
At the time of Cooperative Agreement closeout, the
State must submit an Inventory Report, as described in
Section 5.A. The report must list all equipment origin-
ally costing $1,000 or more that was used during the re-
sponse, and must identify all in-place items still in use
(i.e., equipment that is part of the remedy or is moni-
toring the remedy). The State must describe the condition
of each item and must request EPA's disposition instruc-
tions; it may make disposition recommendations. For
equipment no longer needed, EPA will direct the State to
take one of the actions listed in Section 5.A. Before it
disposes of an item of equipment, the State must effect
decontamination procedures as described in the site safety
plan.
For in-place equipment that is still in use, EPA may
allow the State to use the equipment until it is no longer
needed for the remedy, or the State may keep the equipment
and compensate EPA for its proportionate share of the fair
market value.
B.2 In-place Equipment No Longer Needed
When in-place equipment is no longer needed, the State
must inform EPA and must submit a final inventory of all
equipment with an aggregate fair market value of $1,000 or
more. This inventory must describe the condition of each
piece of equipment and must request EPA to provide dispo-
sition instructions. If the equipment has residual value,
EPA will direct the State to take one of the actions
listed under Section 5.A. If the equipment has no resid-
ual value, a cost-effectiveness evaluation will be con-
ducted to determine whether the equipment will be left in
place or torn down and/or removed. In either case, the
State must decontaminate each piece of equipment as
required in the site safety plan, before disposition.
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6. ADDITIONAL INFORMATION
In addition to CERCLA requirements, there are
regulatory requirements and Office of Management and
Budget (OMB) Circulars that a State must follow when
purchasing or leasing equipment under an EPA assis-
tance program. Some of the specific requirements
have been cited in this appendix. For further infor-
mation consult:
40 CFR Part 30, "General Regulation for
Assistance Programs," which specifically
addresses the purchase, management, and dis-
position of equipment (sections 30.530,
30.531, and 30.532)
40 CFR Part 33, "Procurement under Assis-
tance Agreements," which outlines the mini-
mum requirements for procuring supplies,
services, and construction under EPA assis-
tance agreements
EPA Assistance Administration Manual,
Chapter 26, "Property Management"
OMB Circular A-87, Cost Principles for State
and Local Governments, which establishes the
principles and standards to which a State
must adhere when purchasing equipment with
Federal funds.
Regional and State personnel experienced in admin-
istering Federal assistance programs may help to
interpret these requirements.
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