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A number of commenters had questions regarding the $250,000
funding limit for FY 88 Core Program Cooperative Agreements as
stated in the guidance. Exhibit 1 of the Core Program guidance
lists five functions with associated tasks that are eligible for
funding under a CPCA. The $250,000 funding ceiling was obtained
by assigning $50,000 (typically the cost of one staff person to
conduct the function) to each of the five functions in Exhibit 1.
Not all States will receive the maximum $250,000. Some States
will not need the full funding amount if they have their own
sources of funds, or if they do not intend to assume the lead
agency role, or if they do not have a large number of sites in
CERCLIS or on the National Priorities List (NPL) that would
warrant development of a full blown State program. EPA must be
prudent .and scrutinize each request for funding to ensure that
States with mature CERCLA programs are not funded to the detriment
of those States which are in the process of developing their CERCLA
implementation programs.
The general contract management support to all aspects of
the response program task under the function entitled Fiscal and
Contract Management to Support the CERCLA Program (Exhibit 1)
was expanded to include construction. The expansion of this
task to include construction is intended to allow for funding of
activities a State may undertake to ensure that procurement and
contract management are conducted in accordance with State and
Federal requirements.
A number of commenters also asked about the purchase of
equipment (i.e., vehicles, PCs) under a CPCA. Equipment needed
to support site-specific work (like trucks) must be charged
site-specifically in a single- or multi-site cooperative agreement
and cannot be funded under the Core program. However, some
equipment is appropriate under a CPCA such as the purchase of
a single PC for Core program activities. Regions need to
scrutinize equipment needs carefully to ensure that the costs
are not more appropriately charged to one or more sites.
A number of the commenters stated that certain staff
responsibilities associated with Core Program functions/tasks
listed in Attachment 2 of the guidance seemed to be site-specific.
The staff responsibilities identified as being site-specific by
the commenters were reviewed and revised for inclusion in the
final guidance.
The Fiscal and Contract Management portion of Attachment
2 was expanded to include a task to develop filing protocols for
active site files and supplement the accounting system to track
expenditures at site level.
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Other specific comments included the following:
(1) Comment:
The Core Program Cooperative Agreement (CPCA) is not a
performance-based Cooperative Agreement. The work program for
performance-based CAs states that the "outputs should be measurable
commitments with completion timeframes." The activities in the
CPCA are not quantitative; few of them are measured commitments.
Disposition:
After discussing this issue with the Grants Administration
Division (GAD), it was decided that the CPCA is not a performance-
based CA; therefore, reference to a performance-based CA was
deleted from the guidance. Instead, we have decided to evaluate
yearly funding needs for States in terms of work years of effort.
A general statement was added to the guidance stating that the
CPCA is designed to support at least 5 work years of overall
CERCLA Core program activities.
(2) Comment:
Site discovery activities, which were included in the State
"workload-based" tasks in the March 1987 draft, have been omitted
from the "State-specific additional tasks" in the current draft
(July 20, 1987).
Pi sposition:
Site discovery is not eligible for funding at 'this time. It
is OERR's opinion that all sites presently listed in CERCLIS should
be addressed prior to any funding for site discovery under the
CPCA. In addition, the State-specific additional task of State
assistance in EPA guidance development was deleted from Exhibit 2
of the guidance since the Office of General Counsel stated that
this task may be inappropriate for inclusion in the guidance
at this time.
(3) Comment:
States have already asked if the CPCA will pay for negoti-
ations with responsible parties for remedial activities at CERCLIS
sites that are not currently, and never will be, on the NPL and
are not currently being paid for by other Super fund Cooperative
Agreements.
Disposition :
CPCA funding will not support response activities
at CERCLIS sites that are not currently, and never will be proposed
for final listing, on the NPL. This point is now clearly expressed
in the guidance.
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-4-
(4) Comment:
Since "left-over"
another site, can left
D1sposition :
credits from
over- credits
a site can be applied to
be used for CPCA match?
CERCLA State credits are site-specific and cannot be used
to offset a State's cost-sharing obligation for CPCAs, since the
Superfund Amendments and Reauthorization Act authorizes the use
of credits for site response only. A State's cost-share must be
provided for- with direct out-of-pocket non-Federal funds not
used for matching purposes on any other assistance agreement.
A statement has been added to the guidance to this effect.
(5) Comment:
It should be clarified whether- CPCA monies are no-year- (which
are not subject to the Comptroller's carry-over- policy) or two-
year (which must be obligated to the State by the second year of
availability).
Pi sposit ion : '
CPCA monies are no-year funds. Like other Cooperative
Agreements, carry-over of funds will require an amendment to the
CPCA. Unobligated funds will require recertification by the
Office of the Comptroller.
(6) Comment:
A statement regarding a cost recovery mechanism may be
appropriate in the guidance since it does not fully address the
possibility of cost recovery.
Pi sposition :
The language in the guidance was revised to clarify that
CPCA funds are cost recoverable. A detailed discussion of
cost recovery for CPCA expenditures will be provided in forthcoming
Financial Management Division (FMD) guidance regarding cost
recovery.
(7) Comment:
Does the Core Program become part of the EPA-State Agreement?
Pi sposltlon:
The Core Program may be part of the Superfund Memorandum of
Agreement (SMOA). However, it is not mandatory.
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-5-
(8) Comment;
Development, updating, and oversight of the SMOA should be
added to the list of activities that may be funded.
Disposition :
This task was added to the list of activities eligible for
funding with CPCA money.
(9) Comment:
The allowabi1ity, types, and methods of appropriation for in-
kind contributions need to be expanded.
Disposition:
Rather than expanding the guidance, reference is made to 40
CFR Part 30 and Chapter 14 of the Assistance Administration
Manual .
(10) Comment;
The IG Division of the Office of General Counsel stated in
their comments that the Core guidance appears to contemplate the
funding of States for the preparation and negotiation of cooperative
agreements for site work.
D1sposit ion :
Core funding is not intended to be used for preparation and
negotiation of cooperative agreements for site work. A statement
has been added to the guidance to stress this point.
(11) Comment:
The trigger period for the three-year record retention period
is the "submission date for the final Financial Status Report (SF-
269)".
Disposition;
The guidance was revised accordingly.
(12) Comment:
The $10,000 limit on small purchase is being raised to
$25,000 per the June 9, 1987, Federal Register (the proposed
revised A-102).
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-6-
Dispositlon;
A footnote has been added to the Equipment and Contracts
section of the guidance stating that the small purchase ceiling
will be raised to $25,000 when the A-102 revision becomes final
j any questions on the Core Program guidance,
Wine, State and Local Coordination Branch or
21- staff on FTS: 382-2443.
If you have
please call Jan !...._, _.._ . ___
John Banks of her staff on FTS: 382-2443.
Attachment
cc: Director, Waste Management Division
Regions I, IV, V, VII, and VIII
Director, Emergency and Remedial Response Division
Region II
Director, Hazardous Waste Management Division
Regions III and VI
Director, Toxics and Waste Management Division
Region IX
Director, Hazardous Waste Division
Region X
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9375.2-01
STATE CORE PROGRAM FUNDING
BACKGROUND
During the first three years after the enactment of the
Comprehensive Environmental Response, Compensation and Liabil-
ity Act of 1980 (CERCLA or Superfund), each CERCLA program Co-
operative Agreement, covered work at a single site. Conscious
of the States' needs for integrated support for their roles in
CERCLA implementation, EPA, in 1984, expanded this approach to
provide States with the opportunity to enter into Multi-Site/
Multi-Activity Cooperative Agreements (MSCAs) with EPA. An
MSCA is an "umbrella" agreement that may include several re-
sponse activities at one or more sites within a State. EPA
developed the MSCA concept to provide States with the oppor-
tunity to consolidate their resources under one funding docu-
ment covering site-specific, State-lead projects and/or State
participation in site-specific, Federal-lead projects.
Under both CERCLA single-site Cooperative Agreements and
MSCAs, administration, management and coordination costs have
been limited in most cases to 8 to 12 percent of site-specific,
project costs. For Federal-lead activities they have been 2 to
4 percent of site-specific, project costs during remedial plan-
ning and less during remedial action, plus site-specific re-
sponse activities that are approved by EPA on a case-by-case
basis. All funds in Cooperative Agreements and MSCAs have been
obligated by site/activity, and States have been required to
charge management and administration costs to a specific site.
Fund monies have not been used to support State CERCLA imple-
mentation efforts. As a result, States with ready sources of
funds have been able to participate fully in EPA's efforts to
implement CERCLA. States without necessary resources have not
been able to develop such a program with site-specific funding.
The Superfund Amendments and Reauthorization Act of 1986
(SARA) authorizes an expansion of CERCLA program support acti-
vities. The Conference Report section on amendments to section
104(d) of CERCLA reflects Congressional intent to increase the
scope of Cooperative Agreements:
"Included within -the class of activities that may be the
subject of Cooperative Agreements are those associated with
the overall implementation, coordination, enforcement,
training, community relations, site inventory and assess-
ment efforts, and administration of remedial efforts as
authorized by this Act." (H.R. Rep. 99-962, 99th Cong., 2d
session, p. 195)
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9375.2-01
In keeping with the intent of SARA, EPA has developed the
Core Program Cooperative Agreement (CPCA) concept to help en-
sure that each State has the funds to support a program to
carry out CERCLA activities. This approach does not replace
the existing requirements associated with site-specific fund-
ing, which are detailed in the manual State Participation in
the Superfund Program. Rather, it is intended to build,
strengthen, and maintain a State's ability to participate in
all aspects of the CERCLA program.
A. Core Program Cooperative Agreements
The CPCA provides funds to conduct CERCLA activities that
are not assignable to specific sites, but support a State's
site-specific response program. One CPCA will be negotiated
with each State that chooses to enter into an agreement of this
type. EPA will enter into a CPCA with the lead agency for
CERCLA response designated by the State Governor. To involve
other essential parties, the lead State agency may then enter
into intergovernmental agreements with other State agencies, in
accordance with 40 CFR 33.260. The lead agency will be
responsible for disbursing funds to those other State
agencies. These agreements will not be subject to ^PA
approval, but procurements under these agreements must comply
with the requirements of 40 CFR Part 33.
The CPCA must be a separate agreement. It cannot D* part
of an MSCA or be added by amendment to an existing Cooperative
Agreement, nor can the CPCA be amended to add any site-specific
activities. Regional Administrators (RAs) have approval
authority for CPCAs.
Funding for CPCA activities is intended to' support a
State's ability to take the lead for response actions at a site
and to participate fully in CERCLA implementation activities
conducted by EPA. The CPCA is designed to support at least
five work years of overall CERCLA support activities. Funds to
support State staff directly involved in the day-to-day tasks
necessary to oversee site-specific response activities must be
included in and continue to be charged against a separate Co-
operative Agreement or MSCA covering that site. Site-specific
response actions must also continue to be charged appropriately
to each site through the Cooperative Agreement or MSCA used to
fund such site-specific activities. CPCA funds may not be used
for non-NPL site-related activities that are not currently
being paid for by other Superfund Cooperative Agreements.
Furthermore, it is not EPA's intention to fund States under a
CPCA for the preparation and negotiation of Cooperative
Agreements for site work. During the negotiation for and
administration of funds obligated for CPCA activities. State
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9375.2-01
staff must ensure that their time is related to CERCLA
implementation support activities rather than to site-specific
activities. If not, during audits the eligibility/allowability
of costs expended during the CPCA may be questioned and
subsequently disallowed.
1. Functions That May Be Funded Via a CPCA
The functions that are eligible for funding under a CPCA
are:
General program management and supervision necessary
to direct a State program to carry out CERCLA acti-
vities
Interagency coordination on all phases of response
(pre-remedial, remedial, removal and enforcement acti-
vities) necessary to develop and sustain a concerted
and consistent State effort to implement CERCLA acti-
vities
Legal assistance associated with proper administration
of the CERCLA program
Development of procedures for fiscal and contract
management to ensure the financial integrity of CERCLA
site-specific expenditures and CERCLA-related
procurement administration
Clerical support.
Exhibit 1, on the following pages, specifies tasks that can be
associated with each of these functions.
2. Funding of Core Program Cooperative Agreements
CPCAs are negotiated with States and funded annually; the
CPCA work plan must be submitted with the CPCA application.
Each State may receive up to $250,000 at this time for CPCA
eligible activities. The exact amount provided will be based
on 1) the State's CERCLA program objectives, 2) the number of
State sites- in the CERCLA Information System (CERCLIS) in-
ventory and on the National Priorities List (NPL) awaiting Fund
financing, 3.) the level of sophistication of the State's CERCLA
implementation capability, and 4) the number of State-lead
sites. Funding requests must be made via the Superfund
Comprehensive Accomplishments Plan (SCAP) process.
As EPA and the States gain experience and establish a track
record for CPCAs, this ceiling may be increased. To ensure
that States can develop ongoing programs to implement CERCLA,
Regions should work with all interested States during the SCAP
development process to address core funding needs adequately
and to give core funding requests priority consideration.
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9375.2-01
EXHIBIT 1
CORE PROGRAM COOPERATIVE AGREEMENT
FUNCTIONS WITH ASSOCIATED TASKS
General Program Management and Supervision to Support CERCLA
Activities
Program planning and direction
State/EPA interagency coordination
Training of staff in general aspects of CERCLA and CERCLA
requirements
Development and implementation of initiatives to secure State
match for remedial actions or provide independent funding
mechanisms
CERCLA Program Interagency Coordination
EPA/State coordination and development of strategies to manage
the response process
Reporting and information sharing
Development, oversight, and updating of EPA/State Superfund
Memorandum of Agreement (SMOA)
Short and long range planning associated with EPA/State SMOA
commitments and the SCAP
Development and maintenance of project management
tracking/data base system and CERCLIS
Non-site-specific travel for interaction with EPA on general matters
relating to implementation of the CERCLA program
Development of process/system for identification of and
communication with the Federal government about State ARARs
Long range planning to ensure that CERCLA assurances can be
met when required
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9375.2-01
EXHIBIT 1 (Continued)
CORE PROGRAM COOPERATIVE AGREEMENT
FUNCTIONS WITH ASSOCIATED TASKS
CERCLA Program Interagency Coordination (continued)
Planning associated with technology transfer and training in
general aspects of CERCLA and CERCLA requirements
Legal Assistance Relating to Implementation of CERCLA
General legal assistance
Protocols for document review for legal sufficiency
Legal assistance in coordinating ARAR identification
Development and refinement of an enforcement program and
procedures for implementation
Development of legal authorities
Fiscal and Contract Management to Support the CERCLA Program
Assistance in procurement to satisfy State/EPA requirements
Procedures for general contract management, including
construction
Fiscal tracking and maintenance of supporting documentation
CERCLA-Related Clerical and Administrative Support Not Directly or
Indirectly Charged to Any Site-Specific Cooperative Agreement or MSCA
- 5 -
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9375.2-01
Regions and States should negotiate CPCAs annually. Nego-
tiations must be conducted at least two quarters prior to the
beginning of each fiscal year if final applications are to have
90 days for review, as required by SARA, before funds are
available for award.
3. Cost Sharing
EPA's General Regulation for Assistance Agreements requires
a State to contribute a minimum match of 5 percent for any
grants or Cooperative Agreements awarded by the Agency when a
cost share is not specified in the Federal legislation author-
izing such arrangements (40 CFR 30.307). Each State will,
therefore, be required to contribute at least 5 percent of the
costs of the response program support activities covered by the
CPCA.
The lead State agency will be responsible for providing the
cost share; however, it may enter into intergovernmental agree-
ments with other State agencies that may provide assistance in
meeting cost-share requirements. CERCLA State credits may not
be used to offset a State's cost-sharing obligation for CPCAs,
since SARA authorizes the use of credits for site response
only. A State's cost share must be provided for with direct,
out-of-pocket, non-Federal funds not used for matching purposes
under any other assistance agreement. EPA will not allow
deviations from this cost-sharing requirement. This
cost-sharing requirement may be provided for with in-kind
contributions (further information on in-kind contributions can
be found in 40 CFR Part 30 and Chapter 14 of the Assistance
Administration Manual). States with which EPA has worked to
develop this new CPCA initiative agree that the cost-sharing
requirement fosters the participatory relationship necessary to
sustain the EPA/State partnership, as intended by the amended
CERCLA. The current $250,000 Federal funding limit includes
both direct and indirect CPCA costs. When the State's 5
percent match is added to this figure the total support for a
State core program potentially available through the CPCA will
be approximately $263,150. [$250,000 Federal share
(direct/indirect) + 5 percent State match (direct/indirect) of
$13,158 » $263,158.] Any funds that a State expends beyond the
required match are not eligible for credit under section 104 of
CERCLA, as .amended, nor will such overmatches be reimbursed.
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9375.2-01
4. Obiiqat ion/Account ing
The EPA account number for recording obligations of CPCAs
must be structured in the following manner:
Example State Core Program Account Number
Ton-Digit Account Number
5TFA03D700
Fiscal Year 1985-
Superfund Program Element Number-
Allowance Holder is Region 3
Regional Identifier / Responsibility Center-
Activity Code (State Core Program)
Response Identifier Code
In administering its CPCA, each State must meet the cost-
documentation requirements set forth in 40 CFR Part 30, CPCA
funding, although not site-specific, is cost recoverable.
Costs under CPCAs will be allocated to sites by the EPA
Headquarters Financial Management Division (FMD) (further guid-
ance will be provided by that office). The methodology will be
similar to the Agency's approach to distributing its own in-
direct costs. Furthermore, all CPCAs are subj-ect to audit.
Significant costs a State incurs under a CPCA that can be di-
rectly attributed to a site-specific action(s) funded by a Co-
operative Agreement or an MSCA will not be sustained by audit,
and the letter of credit will be adjusted accordingly. In such
situations, the State may be required to reimburse EPA for any
disallowed costs.
Amendments to the CPCA are dependent upon the availability
of funds. It is solely up to the discretion of the Award Offi-
cial to determine whether to make cash amendments or adjust-
ments to the CPCA.
5. Carry-Over of Funds
In keeping with Agency policy, funds not expended by a
State at the end of a one-year budget period may be applied
toward the activities planned in the year immediately suc-
ceeding. Such carry-over funds should be expended before new
award dollars are used. When the State proposes to carry funds
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9375.2-01
over from one budget period to the next, however, EPA will
closely review the State's results or achievements from the
year completed against the approved work plan for that period
and will evaluate the State's request for funding in the next
budget period. Carry-over funds may be used to offset new
assistance monies since the carry-over amount may be considered
either additional funding or partial payment for activities
approved during the subsequent year.
B. State-Specific Additional Functions
In addition to the CPCA functions listed in Exhibit 1,
States with adequately developed core programs for CERCLA im-
plementation may seek funds to accomplish functions that result
in delivery of specific products or that further increase the
State's capabilities to implement CERCLA. For example, the
State may, in one year, want to develop a generic training
course to provide instruction to its staff on generally appli-
cable CERCLA procedures and then, in the succeeding year, to
refine and conduct the course. Or, the State may want to de-
velop a generic remedial program procurement procedures manual
that can be used by State Project Managers. In the first year,
the State would develop the manual or training course; in the -
second year, maintenance and update of the manual or offering
the course and paying for staff to attend would become a
general CPCA ongoing task. Examples of State-specific
additional functions and tasks can be found in Exhibit 2, on
the following page. Core program funds will be included in
annual SCAP projections, but funding for State-specific
additional functions will not be included as separate items in
the annual SCAP. As individual Regions work with States to
develop draft agreements, quarterly changes to the SCAP should
reflect the funding required for these additional functions.
RAs can approve CPCAs that include State-specific additional
funding once the necessary monies are approved through the SCAP.
1. Funding State-Specific Additional Functions
EPA will consider funding these functions and associated
tasks under the CPCA on a case-by-case basis. These activities
will not be funded unless a state has sufficiently developed
its core program for CERCLA implementation. States with new or
developing programs will generally not be eligible for State-
specific additional funding. To obtain funding, the State must
specifically request Regional approval of such functions, and
explain what the functions are and why they are needed. The
State's justification must also present a line-item explanation
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9375.2-01
EXHIBIT 2
STATE-SPECIFIC ADDITIONAL TASKS
General Superfund Community Relations Program
Achievement of State Contract Laboratory Program Equivalent Status/
Improvement of Quality Assurance Project Plan, Quality Assurance and
Quality Control Reviews
State Health and Safety Program
Staff Development and Training (dollar amount)
Health Risks/Health Assessment Reviews
Priority setting and management of State sites in CERCLIS awaiting
fund-financing
- 9 -
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9375.2-01
of the proposed cost sufficient to allow adequate EPA review.
The Region then must ascertain that State-specific additional
functions foster a State's implementation of CERCLA.
Regions will examine the State-specific initiative request
very closely to ensure that 1) the proposed expenditures
support increased State involvement in CERCLA activities, 2)
the State's core program is sufficiently developed to address
the State-specific additional functions properly, and 3) the
request provides sufficient justification. The funding in-
crease will be considered via the quarterly SCAP process.
EPA's goal must be to ensure that all States that are imple-
menting a CERCLA program have an opportunity to obtain CPCA
funding to support their core programs and to ensure that fund
monies allocated for core funding further EPA's efforts to in-
crease States' involvement in CERCLA implementation.
2. Retirements for CPCAs That Include State-Specific
Additional Functions
There are no additional requirements that a State must meet
when applying for or administering a CPCA that includes a
State-specific additional function. In general, the following.
requirements apply:
Cost sharing: A State is required to provide at least
5 percent of the direct and indirect costs of all ac-
tivities covered by the CPCA, including the State-
specific additional function. The State may provide
its share using in-kind contributions. CERCLA State
credits may not be used to offset any part of the
State's required match.
Obligation and accounting: The additional activities
are obligated using the general CPCA account number
shown in Section A.4; there is no need to account for
funds used to support State-specific additional func-
tions separately from those used for general core pro-
gram activities. The State must comply with the cost-
documentation requirements of 40 CFR Part 30 in
administering its CPCA and should be sure that costs
claimed under the CPCA could not be more appropriately
charged to a site-specific Cooperative Agreement or
MSCA.
Carry-over of funds: Any unexpended balance of funds
remaining in the CPCA at the end of a budget period
can be carried over to the immediately succeeding bud-
get period. Such carry over, however, -will initiate
close Agency review of the State's budget request for
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9375.2-01
the next year, especially if funds remain for any ad-
ditional functions. Unexpended balances may be used
to offset the award of new funds for State-specific
additional functions. These requirements are des-
cribed in more detail in Section A.
3. Further Direction on State-Specific Additional Functions
Funding for the additional functions listed in Exhibit 2
will generally be available to States with adequately developed
core programs. During the first year of implementation, how-
ever, such activities may not be funded while EPA continues to
explore issues associated with State-specific additional func-
tions. For example, EPA considered funding State admini-
stration of the technical assistance grant program, which pro-
vides a technical adviser to a community, but concluded that
this could be considered site-specific work. Thus, this pro-
posed function will not be funded under a CPCA unless further
analysis supports a different eligibility decision.
Further guidance on State-specific additional functions and
what may be considered for funding under a CPCA will be devel-
oped after some experience has been gained.
C. Terms and Conditions of a CPCA
The general assistance terms and conditions that are used
for a Cooperative Agreement or an MSCA that cover site-specific
response actions may be applicable to a CPCA. Additional in-
formation on these terms and conditions can be found in
Appendix F of the manual State Participation in the Superfund
Program and obtained from Regional assistance offices. In ad-
dition, examples of applicable provisions for some State-
specific additional functions can be found in Attachment 1 to
this document.
For a CPCA, the State and Region should tailor necessary
provisions to cover a general State core program. The program-
specific terms and conditions contained in the assistance
application should focus on the activities included in the work
plan for the proposed program. This plan must identify program
objectives and provide a schedule for meeting those objectives,
as well as specifying the points that require coordination
between the-.State and EPA. EPA may review and comment on
specific items that are developed under the CPCA — such as
training manuals and other products — to ensure that they are
complete; however, EPA approval of such documents is not
required. Some suggested CPCA-specific provisions can also be
found in Attachment 1.
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9375.2-01
In addition, a State must meet several kinds of reporting
requirements under a CPCA. The State must provide quarterly,
narrative-style reports on its accomplishment of work plan ob-
jectives and milestones. It must also submit financial reports
consistent with the requirements in Part 30, but is not re-
quired to meet the detailed financial site/activity-specific
reporting requirements that apply to Cooperative Agreements and
MSCAs that cover specific sites. Under a CPCA, States are re-
quired to file EPA Financial Status Reports (FSR, SF-269) an-
nually, within 90 days of the end of the one-year budget
period, and to submit Cash Transaction Reports consistent with
the requirements of the letter of credit method' of payment.
D. Equipment and Contracts
States that procure equipment or contractors under a CPCA
must adhere to the sections of the State Participation Manual
that concern purchase of equipment in the Superfund program.
Equipment purchased to support CPCA activities must be procured
pursuant to 40 CFR Part 33, and maintained consistent with a
property management system as described in 40 CFR Part 30.
Most equipment or supplies obtained under a CPCA will prob-
ably qualify for the small-purchase method of procurement,
which may be used only for procurement actions of $10,000* or
less, including estimated handling and freight charges, over-
head and profit. The small purchase method requires a State to
obtain price or rate quotations from an adequate number of
qualified sources and, after having done so, to make the pur-
chase. Equipment or supplies costing, in the aggregate, more
than $10,000* must be obtained using the appropriate method
(formal advertising, competitive negotiation or, in very rare
circumstances with Award Official approval, noncompetitive ne-
gotiation). Personal property purchases totalling over $10,000
must be approved by the Award Official (40 CFR 30.530(b)).
States should generally have no need to obtain contractors
to perform any core program functions/tasks. For State-
specific additional functions, States cannot procure con-
tractors under CPCAs unless their use has been specifically
approved by EPA. Any subagreements for services under the CPCA
that the State does let must comply with the requirements of 40
CFR Part 33. In addition, the State must submit a procurement
The $10,000 limit for a small purchase is being raised to
$25,000 per the "Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local
Governments", proposed revisions to Office of Management
and Budget Circular A-102.
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9375.2-01
certification form (EPA Form 5700-48) with its application in-
dicating either that its procurement system meets the require-
ments of 40 CFR Part 33 or that the State will comply with Part
33 in any procurement action. A provision on this topic is
included in Attachment 1.
E. Closeout
Once a State has entered into a CPCA with EPA, a continua-
tion agreement may be awarded each Federal fiscal year to add
funds and to cover subsequent work for the State's core pro-
gram. In such cases, any unexpended balances remaining at the
end of one budget period can be carried over into the budget
period immediately succeeding for use as additional funding or
partial payment of the next year's activities. Participation
in the CPCA by States is voluntary, however. If, after having
entered into a CPCA with EPA, the State opts not to take part
in later years or EPA and/or the State wish to terminate the
CPCA before the end of the official period of performance, the
CPCA will be closed out.
Subpart H, 40 CFR Part 30, contains the closeout require-
ments that apply to all recipients of EPA financial assis-
tance. General requirements for recipient reporting are stated
in 40 CFR Part 30. Chapter 40 of EPA's Assistance Administra-
tion Manual (1984) also provides policies and procedures for
closeout. All these apply to closing out CPCAs.
In general, the closeout will occur as follows:
If the closeout is the result of a termination of the
CPCA, EPA and the State will develop a mutually ac-
ceptable agreement that outlines the terms of the
termination and will amend the CPCA accordingly.
The State will provide the final FSR within 90 days of
project termination or .completion.
EPA will process the CPCA amendment, if any, review
and approve the FSR, and follow through on any delin-
quencies or deficiencies,
EPA will follow through on any audit conducted, and
ensure that all findings are resolved and that recon-
ciliation of cost-sharing requirements is completed.
In accordance with 40 CFR 30.501, the State must keep
records for three years after the sub- mission date of the
final Financial Status Report (SF-269). If any litigation,
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9375.2-01
claim, appeal or audit is initiated before the end of the
three-year period, all records must be kept until the three
years have passed or until all such actions are resolved,
whichever is longer.*
F. Conclusion
CPCAs will be awarded beginning in FY88. At the present
time, EPA is working closely with several EPA Regions and
States to develop nationally consistent CPCA procedures and,
from those, more detailed guidance. To provide States with
additional assistance, Attachment 2 to this document provides a
description of staff responsibilities associated with the core
program functions and tasks identified in Exhibit 1. The re-
sponsibilities listed are not meant to be all-inclusive;
rather, they are provided as an aid to States in developing
their core programs and CPCA applications.
Development of CPCA procedures will be an evolutionary pro-
cess, and the guidance will change as EPA and the States joint-
ly gain experience. The Agency looks upon this as a partici-
patory activity in which Headquarters, the EPA Regions and the
States will be actively involved, and welcomes any comments or
suggestions. Please contact the State and Regional Coordi-
nation Branch (WH-548E), U.S. Environmental Protection Agency,
401 M Street, S.W., Washington, D.C. 20460, (FTS/202) 382-2455
for additional information and assistance or suggestions
concerning development of CPCA applications and guidance.
The three-year record retention requirement may in the
future, be extended for Superfund actions.
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9375.2-01
ATTACHMENT 1
GENERAL PROVISIONS FOR STATE CORE PROGRAM COOPERATIVE
AGREEMENT APPLICATIONS
This list of provisions Is not all Inclusive. Additional provisions may be
necessary to satisfy the Agency's General Regulation for Assistance
Programs (40 CFR Part 30), as well as CERCLA program requirements.
A. Letter of Credit Procedures
In accepting this Cooperative Agreement, the recipient agrees to the following
conditions for the letter of credit method of financing:
a) Cash drawdowns will occur only when needed for disbursements.
b) Timely reporting of cash disbursements and balances will be provided,
as required by the EPA Letter of Credjt Users Manual.
c) The same standards of timing and reporting will be imposed on
secondary recipients, if any.
d) When a drawdown under the letter of credit occurs, the recipient
will show on the voucher (Form TFCS-5805) the Cooperative
Agreement number, the EPA account number, and the drawdown
amount (see attached "Instructions for Using the Superfund
Account Number Under Cooperative Agreements"). The eighth
digit of the account number (see Item 39, page 1 of the
Cooperative Agreement) is the code for State core programs, "7".
B. Unexpended Balances
Unexpended balances remaining at the end of the budget period may be
used as additional funding or partial payment of activities for the next
budget period. EPA will consider amendments to add funds to this
Agreement for the next fiscal year, subject to the availability of
appropriated funds.
C. Review of Documents
The State agrees to submit copies of plans, manuals and other products
prepared under this Cooperative Agreement to the EPA Cooperative
Agreement Project Officer for review for completeness. EPA will review
these documents to ensure consistency with the scope df work for this
Agreement.
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9375.2-01
ATTACHMENT 1 (Continued)
GENERAL PROVISIONS FOR STATE CORE PROGRAM
COOPERATIVE
AGREEMENT APPLICATIONS
D. Quarterly Reports
The State agrees to submit progress reports to the EPA Cooperative
Agreement Project Officer within thirty (30) days of the end of each
Federal fiscal quarter. These reports shall include a narrative summary
of activities conducted to date to meet the overall goals and objectives of
this Agreement and associated schedules provided in the State's work
plan approved by EPA.
E. Financial Reports
The State agrees to submit a Financial Status Report (FSR, SF-269) to
EPA annually within 90 days of the completion of the Cooperative
Agreement budget period.
The following provisions are applicable only if the State has
obtained EPA approval to procure contractor services or to let
subagreements as part of its work under a State-specific
additional function.
F. Procurement
This Agreement is subject to the procurement standards of Title 40 of the
Code of Federal Regulations Part 33 (copy enclosed). As part of its
procurement requirements, the State has completed and attached to this
assistance application a copy of EPA Form 5700-48, "Procurement
System Certification Form for Applicants for Federal Assistance."
[See Appendix F, Section A of the manual State Participation in the
Superfund Program, for requirements the State must meet for using
minority and women's business enterprises, and appropriate provisions
on their use.]
G. Prompt Payment Act Provisions
In accordance with section 2(d) of the Prompt Payment Act (PL 97-177),
Federal funds may not be used by the recipient for the payment of
interest penalties to contractors when bills are paid late, nor may interest
penalties be used to satisfy cost-sharing requirements. Obligations to
pay such interest penalties will not be obligations of the United States.
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ATTACHMENT 2
9375.2-01
STAFF RESPONSIBILITIES ASSOCIATED WITH CORE PROGRAM
FUNCTIONS/TASKS
Program Management & Supervision
Supervise and manage the CERCLA
implementation staff that are employed to meet the
organizational and program goals.
Supervise the community relations activities of
Project Managers in their role as primary site
spokespersons or, under appropriate
circumstances, act as the community liaison so that
the public is aware of hazards at sites and involved
in progress being made to remedy the hazards or
releases at those sites.
Supervise the activities of the program to ensure
the development of a preliminary plan of action for
each site which takes into account the possibility of
each site being a CERCLA-financed or a
Responsible Party financed cleanup, so that the
appropriate course of action is identified and a
strategy is developed for site cleanup
implementation.
Supervise the program enforcement process so
that appropriate enforcement actions are under-
taken against the Responsible Party(ies) in ac-
cordance with applicable laws, rules, regulations,
enforcement processes, procedures and policies.
Supervise the activities of the program to secure
and manage State and Federal CERCLA
implementation monies and document their use, so
that funds are available for cleanup activities and
all administrative requirements are properly
followed for fund-financed sites.
Supervise the program process to select or task
consultants/contractors and develop and negotiate
scopes of work so that consultants/ contractors are
selected in accordance with State and Federal
procurement requirements.
NOTE: Functions/tasks must support CERCLA activities.
Objective
Hire and maintain
quality program
staff.
Effective community
relations.
Early, effective site
planning.
Effective enforce-
ment program.
Appropriate CERCLA
implementation
monies.
Effective contractor
procurement.
Schedule
On-going
On-going
On-going
On-going
On-going
On-going
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ATTACHMENT 2
(Continued)
9375.2-01
Program Management & Supervision (continued)
Supervise the process to plan for, prepare for, and
participate in litigative activities so that the litigative
efforts are properly identified, developed and
supported.
Determine and monitor pertinent policy and
technical issues related to State and Federal
implementation of CERCLA.
Monitor regulation development related to State
and Federal implementation of CERCLA.
Review appropriate EPA administrative guidance
documents related to Federal implementation of
CERCLA.
Direct the development and submission of
applications for Federal CERCLA monies in
accordance with the SCAP development
procedures and timeliness specified in the SMOA.
Maintain an awareness of the need and
applicability of State and Federal CERCLA monies
for (State name) hazardous waste sites.
Direct coordination and negotiation with EPA for
the process and protocols to develop State/EPA
CAs and Superfund State Contracts (SSCs).
Direct the development and implementation of
fiscal audit procedures, and maintain adequate
reports and financial records.
Develop protocols to audit expenditures and
assure compliance with State/EPA CAs and State
CERCLA expenditure requirements.
Objective
Effective planning
for compelling per-
formance or cost
recovery litigation.
Effective understand-
ing of the CERCLA
implementation program.
Proactive identification of
potential, future effects
on State program.
Consistent adherence to
Federal guidance.
Effective SCAP develop-
ment process.
Effective identification of
funding needs and
smoother response
process.
Consistent and effective
State CAs and SSCs.
Accurate, complete State
accounting procedures
and records.
Accurate accounting
procedures
and records.
Schedule
On-going
On-going
On-going
On-going
Yearly
On-going
On-going
Yearly
On-going
NOTE: Functions/tasks must support CERCLA activities.
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ATTACHMENT 2
(Continued)
9375.2-01
Program Management & Supervision (continued)
Direct the preparation and submission of progress
reports detailing work accomplished, funds
expended, and status of schedule and work plan
for each CA, SSC and State CERCLA project.
Develop the process/protocols for contract
management, including construction, so that
contractor procurement and contract expenditures
are conducted in accordance with all applicable
rules, laws and policy.
Direct the process for development of a litigation
strategy and litigation file to be used for CERCLA
activities.
Direct coordination process for litigation and/or
administrative settlements with EPA.
Maintain an awareness of laws, rules, and
policies that may affect the implementation of
CERCLA.
Direct modifications in State/EPA CAs, SSCs and
State CERCLA implementation activities in order
to ensure compliance with Federal, State and
local laws, rules and regulations.
Identify training needs, develop appropriate
generic training plans, and assign training for
subordinate staff in general CERCLA
requirements and general aspects of CERCLA
implementation.
Objective
Progress reports.
Effective and smooth
procurement process.
Litigation strategies and
files.
Coordinated enforce-
ment actions.
Proactive identification of
potential, future effects
on State program.
Effective and up-to-date
CAs, SSCs and State
activities.
Comprehensive training
needs assessments and
plans.
Schedulg
Quarterly
On-going
On-going
On-going
On-going
On-going
On-going
NOTE: Functions/tasks must support CERCLA activities.
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ATTACHMENT 2
(Continued)
9375.2-01
Interaoencv Coordination
Maintain awareness of CERCLIS (EPA's national
CERCLA implementation data system) regarding its
capabilities and potential for meaningful State
interface.
Investigate and, if appropriate, implement
computer-based systems to aid the State in project
management, program management and/or
information exchange.
Develop program reporting systems or data bases to
meet reporting requirements and to enhance
information sharing capabilities.
Objective
CERCLIS awareness.
Automated tools.
Reporting systems and/
or data bases.
Schedule
On-going
On-going
On-going
NOTE: Functions/tasks must support CERCLA activities.
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ATTACHMENT 2
(Continued)
9375.2-01
CA Administration fPre-award)
Develop the process/protocols to ensure that scopes of
work for CAs and amendment requests are developed
in conformance with State and EPA administrative
requirements and policy.
Ensure that budgetary and other administrative aspects!
of CA applications and amendment requests conform
with State and EPA requirements and policy.
Assist in the development of or make
recommendations for future State policies so that State
CERCLA implementation is administered effectively.
Develop the process/protocols to ensure that
appropriate State assurances and commitments are
made in a manner that both meets EPA requirements
and serves the best interests of the State.
Track/expedite progress of CA application and
amendment request packages through the State
hierarchy to final signature and transmittal.
Continually be aware of and review new or modified
EPA CA guidance and serve as a resource to site
Project Managers.
Objective
High-quality scopes of
work.
Administrative quality
control.
Improved program
administration.
Administrative quality
control.
Expedited processing.
Improved awareness of
EPA CA guidance.
Schedule
On-going
On-going
On-going
On-going
On-going
On-going
NOTE: Functions/tasks must support CERCLA activities.
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ATTACHMENT 2
(Continued)
9375.2-01
CA Administration (Post-award)
Develop the process/protocols for review of CA award
and amendment offers received from EPA to ensure
uniformity and compliance with State requirements.
Upon State execution of CAs or CA amendments,
initiate the administrative processes to incorporate the
new/revised budget into the State's financial system
and other appropriate tracking systems.
Provide instruction and training to site Project
Managers, support staff, and program managers as
necessary to familiarize them with the terms and
provisions of CAs/amendments.
Initiate discussions between the appropn'ate State and
EPA staff upon discovery of the potential need to
amend CAs, coordinate amendment negotiations and
develop amendment applications with input/concur-
rence from the site Project Managers.
Monitor/ensure State progress in meeting the
milestones, providing timely deliverables (including
quarterly reports to EPA), and complying with admini-
strative and financial assurances/special conditions as
specified in the CAs.
Develop future CERCLA implementation cash-flow
projections for administrative and operational needs.
Act as State liaison for CERCLA-related audit activities
to ensure that appropriate documents are provided
and responses are .made to draft and final reports.
Administer project closeout activities regarding the
interface with EPA and State budgetary systems.
Objective
Improved decision
process.
Fiscal implementation
of new budgets.
Administrative training
for staff/managers.
Improved communi-
cations and CA amend-
ments.
Administrative
overview.
Cash flow projections;
improved SCAP
projections.
Audit coordination.
Project closeout.
Schedule
On-going
On-going
As needed
On-going
On-going
Yearly
On-going
On-going
NOTE: Functions/tasks must support CERCLA activities.
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ATTACHMENT 2
(Continued)
9375.2-01
SSC Administration
Coordinate the process for development and execution
of SSCs with EPA when Federal-lead activities require
a State financial match.
Develop protocols to monitor compliance with the
terms and provisions of SSCs.
Develop protocols to administer closeout activities.
Monitor/ensure State progress in meeting State
administrative and financial management require-
ments under SSCs.
Objective
SSCs.
SSC administration.
SSC administration
State participation in
Federal-lead actions.
Schedule
As needed
On-going
On-going
On-going
NOTE: Functions/tasks must support CERCL^ activities.
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ATTACHMENT 2
(Continued)
9375.2-01
Legal Assistance
Draft model documents primarily for enforcement use by
the Project Managers which meet the needs of CERCLA
and applicable State law.
Draft guidance for review of CAs and contracts for
compliance with applicable laws and regulations and
potential for conflict of interest.
Provide consultation on whether proposed State
expenditures/costs incurred under a Cooperative
Agreement are authorized by and consistent with the
NCP.
Review State law and regulation to ensure effective
State implementation of CERCLA.
Draft State guidance, regulation or law to ensure
effective implementation of the State CERCLA-
enforcement program.
Review proposed changes to the Federal CERCLA-
implementation program to assess impact on State
procedures and recommend changes as appropriate
(e.g., establish a State administrative-record system).
Provide interpretation of State law and regulation (e.g.,
ARARs) as they may affect implementation of CERCLA.
Provide general training to State CERCLA-implemen-
tation staff and managers regarding pertinent legal
issues.
Provide general advice and consultation on matters
pertaining to State implementation of CERCLA.
Objective
Model documents.
Legally correct CAs
and contracts.
Appropriate expend-
itures.
Improved implemen-
tation of CERCLA.
New guidance, reg-
ulations and laws.
State operation
improvements.
Legal interpretations
of State law/regu-
lation.
Legal training for
staff/managers.
General legal
advice/consultation.
Schedule
On-going
On-going
On-going
On-going
On-goi'iT*
On-going
On-going
On-going
On-going
NOTE: Functions/tasks must support CERCLA activities.
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ATTACHMENT 2
(Continued)
9375.2-01
Fiscal and Contract Management
Develop and implement modifications to the
State accounting system to ensure accurate and
timely reporting of site-specific expenditures.
Implement and maintain EPA's cost documen-
tation procedures for site-specific response to
support cost recovery according to the EPA FMD
guidance document State Suoerfund Financial
Management and Recordkeepina Guidance.
Develop filing protocols for active site files and
supplement accounting system to track
expenditures at site level.
Develop and manage an internal and external
auditing system to ensure that all expenditures
are legal and chargeable under the provisions of
the applicable CAs and contracts.
Develop future CERCLA-implementation cash
flow projections for both administrative/
operational needs and contractual expenditures.
Develop or review and improve the procurement
process and procedures for the State
CERCLA-implementation program in order to
meet both the requirements of 40 CFR Part 33
and State procurement regulations.
Assist in CERCLA implementation in the soli-
citation and selection of contractors by develop-
ing protocols for 1) the fiscal aspects of RFPs, 2)
ensuring that public-notice requirements are met,
3) performing necessary price and cost analysis,
and 4) ensuring that all necessary documentation
regarding the selection process is compiled and
kept in a procurement file.
Objective
Accurate and timely
accounting and
reporting system.
Effective cost-docu-
mentation procedures.
Create original docu-
ment files.
Improved compliance
with legal and admin-
istrative requirements.
Cash flow projections;
improved SCAP pro-
jections.
Development of
procurement proce-
dures manual; im-
proved procurement
process.
Effective procurement
administration.
Schedule
On-going
On-going
On-going
On-going
Yearly
Assign
Date
On-going
NOTE: Functions/tasks must support CERCLA activities.
- 25 -
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ATTACHMENT 2
(Continued)
9375.2-01
Fiscal and Contract Management (continued^
Ensure compliance with small, minority and
women's business enterprises requirements by
compiling and updating lists of certified firms,
implementing these requirements in all
procurements, and reporting status as required.
Administer the payment of bills for services
rendered, with appropriate Project Manager
interaction/input.
Assist the site Project Managers and contractors to
ensure appropriate documentation and resolution
of payment disputes.
Coordinate the process/protocols for monitoring
contractors' submittals of work products to ensure
compliance with administrative contract terms and
conditions.
Coordinate the preparation and negotiation of
technical, administrative and fiscal amendments to
the contracts.
Coordinate the process/protocols for the review of
contractor work products to ensure that they meet
the needs of and comply with the terms and
conditions of the contract.
Act as a State liaison with the State's procurement
organization and Contract Officers on contract
matters.
Administer the process/protocols for contract
closeout activities.
Continually be aware of and review new or
modified procurement regulations and guidance
and serve as a resource to site Project Managers.
Objective
Compliance with WBE/
MBE requirements.
Appropriate contractor
payment.
Improved administra-
tive record of contractor
interface.
Improved administra-
tive compliance by
contractors.
High-quality contract
amendments.
Quality control of con-
tractor output.
Improved communi-
cation with procure-
ment authority.
Timely and accurate
contract closeouts.
Improved awareness of
procurement require-
ments.
Schedule
On-going
On-going
On-going
Orr-goina
As needed
As needed
On-going
On-going
On-going
NOTE: Functions/tasks must support CERCLA activities.
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ATTACHMENT 2
(Continued)
9375.2-01
Clerical/Administrative Support
Provide general clerical/administrative support
to State core-program professional staff.
Output
Timely and effective
conduct of core-program
clerical activities.
Schedule
On-going
NOTE: Functions/tasks must support CERCLA activities.
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