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 ------- 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 , ------- 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 ------- 9375.1-4-t 11/21/86 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. T-l ------- 9375.1-4-t 11/21/86 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. ------- 9375.1-4-t 11/21/86 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, T-3 ------- 9375.1-4-t 11/21/86 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. T-4 ------- 9375.1-4-t 11/21/86 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. T-5 ------- 9375.1-4-t 11/21/86 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 T-6 ------- 9375.1-4-t 11/21/86 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: T-7 ------- 9375.1-4-t 11/21/86 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. T-8 ------- 9375.1-4-t 11/21/86 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. T-9 ------- 9375.1-4-t 11/21/86 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. T-10 ------- 9375.1-4-t 11/21/86 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. T-ll ------- 9375.1-4-t 11/21/86 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. T-12 ------- 9375.1-4-t 11/21/86 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. T-L3 ------- EXHIBIT T-3 ACCOUNTING EXAMPLE FOR MSCA 9375.1-4-t 11/21/86 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 ------- 9375.1-4-t 11/21/86 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 T-15 ------- 9375.1-4-t 1.1/21/86 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. T-16 ------- 9375.1-4-t 11/21/86 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. T-17 ------- 9375.1-4-t 11/21/86 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. T.-18 ------- |