United Slates
Environmental Protection
Agency
Office of
Solid Waste and
Emergency Response
&EPA
DIRECTIVE NUMBER: 93?5.i-04-w
TITLE: CERCIA Funding of State-lead Removals
APPROVAL DATE: 9/29/86
EFFECTIVE DATE:
ORIGINATING OFFICE: OERR/ERD/IO & HSCD/RSCB
D FINAL
E DRAFT
LEVEL OF DRAFT
DA — Signed by AA or DAA
D B — Signed by Office Director
EC — Review & Comment
REFERENCE (other documents):
Supple-tients 9375.1-04, State F&rticipation in the
Superfund Program
>WER OSWER OSWER
DIRECTIVE DIRECTIVE Dl
-------
^
OtPA
United Slates Environmental Protection Agency
Waihmgton, DC 20460
OSWER Directive Initiation Request
1. Directive Number
9375-1-4-W
2. Ongma'io/ Information
Name of Contact Person
Donald Kraft
Mail Coda
WH-548/B
Office
OERK/ERD
Telephone Number
382-2452
3. Title
CERCLA Funding of State-lead Removals
. Summary of Directive llneluda bnet statement of purposal
To provide guidance to EPA Regions for the development, implementation and
closeout of State Lead Cooperative Agreements for non-time critical removal
actions.
5. Keywords
Superfund, CERCLA, removals, Cooperative Agreements, State-lead removals
ia. Does this Directive Supersede Previous Directives)? | ) Yes fv] No What directive (number, title)
. Do«s It Supplement Previous Directives)? Q Yes Q No What Directive (numbtr. title)
9375-1-4 State Participation in the Superfund Program
. Draft Level
1 — 1 A — Signed by AA/DAA 1 — IB — Signed by Office Director
C — For Review & Comment
LJ In
Development
hij Request Meets OSWER Directives System Format
. Signature of Lead Office Directive^ Cjfcrdinator
Date
Name ah"d Tide of Approving Offic
Timothy Fields, Jr., Director/ERD
Date
9/29/86
DIRECTIVE
-------
A
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON. D.C. 20460
29 1986
OFFICE OF
SOLID WASTE AND EMERGENCY RESPONSE
OSWER DIRECTIVES 9375.i-4-w
MEMORANDUM
SUBJECT: Draft Guidance on CERCLA-Funded, State-Lead
FRCM:
TO:
ovals
Timothy Fields, Jr., Director
Emergency Response Division
Superfund Branch Chiefs, Regions I-X
OHM Coordinators, Regions I-X
MSCA Workgroup
Since April 1986, the Emergency Response Division has been working
with the Multi-Site Cooperative Agreement (MSCA) Workgroup, in coordination
with the Hazardous Site Control Division (H.SCD), State and Regional Coordi-
dination Branch (SRCB) to develop draft guidance in the subject area.
Enclosed for your review and comments is a draft guidance document
for implementing State-lead removals. This draft has been prepared in
outline format and is intended to provide a framework from which to
develop final guidance. This draft guidance has been reviewed by the
MSCA Workgroup and has been revised to incorporate the Workgroup's comments,
The draft guidance sets forth the policies and procedures for awarding
to States the authority and funds necessary to lead CERCLA-financed
ranoval actions. Under this program, State-lead removal actions will be
limited to non-time-critical removals at NPL and non-NPL sites. Regional
Administrators will determine, on a case-by-case basis, removal actions
appropriate for State-lead.
The draft guidance is divided into four major sections:
Section I:
Section II:
Scope of State-Lead Removal Actions
Development of Cooperative Agreement Application
Packages
0 Section III: Administering Cooperative Agreements
0 Section IV: Closeout of Response Agreements
-------
-2-
In addition, where applicable to removals, the draft guidance incorporates
existing procedures and requirements for executing Cooperative Agreements
for remedial actions as contained in the EPA manual entitled State
Participation in the Superfund Program. Final guidance on State-lead
removals will be issued as an appendix to this manual in late October.
Vte would appreciate your written comments on the attached draft by
October 10, 1986. Please make your ccmments directly on the guidance
document and send all ccmments to Don Kraft, Special Assistant to the
Director of the Emergency Response Division. If you have any questions,
please call Don at FTS 382-2452.
Attachments
cc: Don Kraft, ERD
Hans Crump, EPD/ROB
John Riley, ERD/RSCB
-------
DRAFT
9/26/86
CERCLA FUNDING OF STATE-LEAD REMOVALS
I. SCOPE OF STATE-LEAD REMOVAL ACTIONS
A. Types oŁ Actions
1. State-lead removal actions initially will be limited to
non-time-critical removals at NPL and non-NPL sites. All
time-critical removal actions will be Federal-lead, including
actions that are initially categorized as non-time-critical, but
due to extenuating circumstances, the Regional Administrator (RA)
has determined to be time-critical.
(a) Non-time-critical removals appropriate for State-lead are
actions where initiation of cleanup or stabilization efforts
may be delayed for approximately six months or more from the
time the threat is discovered.
(b) This response category includes all activities formerly
categorized as initial remedial measures (IRMs) under the
remedial program and longer term (non-time-critical) removals
that can be planned in advance.
-1-
-------
DRAFT
9/26/86
(c) To date. State experience in leading non-time-critical
actions has been limited to IRM-type activities previously
conducted under the remedial program. Examples of State-lead
IRM-type responses include fence construction, erosion control
and off-site disposal of hazardous waste. Additional examples
are provided in Attachment 1.
2. The Superfund Comprehensive Accomplishments Plan (SCAP) process
will be used as a planning/management tool for identifying removal
actions appropriate for State-lead. Only removals that are listed
on the approved or revised SCAP can be State-lead.
(a) Funds may not be obligated for State-lead removal actions
-that do not appear on the approved SCAP. Removal actions
under consideration for State-lead must be listed on the SCAP
at least one quarter in advance. However, these actions may
be projected on the SCAP for more than one quarter in advance
since, by definition, non-time-critical removals are actions
where initiation of cleanup or stabilization efforts may be
delayed for approximately six months or more from the time the
threat is discovered.
(b) . Removal actions identified for State-lead must be on the
SCAP before the Action Memorandum and Cooperative Agreement
-2-
-------
DRAFT
9/26/86
can be approved. Preparation of the Action Memorandum and
•Cooperative Agreement application can begin, however, before
the removal action is placed on the SCAP.
(c) Revisions to the approved SCAP require coordination with
EPA Headquarters. Regional Office of Hazardous Materials
(OHM) Coordinators are responsible for initiating any
necessary SCAP updates/revisions to ensure that sites
identified for State-lead are placed on the SCAP, as
required. OHM Coordinators should contact their designated
Emergency Response Division (ERD) Regional Coordinator in EPA
Headquarters when updates/revisions to the SCAP are required.
B. Scope of Activities
1. Only those activities authorized in the initial or amended
Action Memorandum will be State-lead, including any operation and
maintenance (O&M) that is CERCLA-funded.
(a) States will procure and lead all contractor cleanup and
stabilization activities, including operation and maintenance
activities authorised in the Action Memorandum.
(b) Once response begins, no non-Federal party other than the
State may direct the response activities being performed
either by the State or its contractor}s).
-3-
-------
DRAFT
9/26/86
2. All CERCLA-funded preliminary assessment and 104(b)-type
activities where necessary to assess the extent of contamination
and to determine whether the incident meets the NCP and CERCLA
criteria for removal action will be Federal-lead.
3. All enforcement activities, including PRP search, and
notification and negotiation with potentially responsible parties
will be Federal-lead. State-lead enforcement activities for
removal actions may be considered once the program has been
implemented.
C. Funding Mechanism
1. State-lead removal actions will be funded via a Letter of
Credit.
(a) Under this method, CERCLA funds are provide'd to a State
through an existing Letter of Credit established at a Federal
Reserve Bank chosen by the State. The State uses — or "draws
down" — funds from the credit account to cover its immediate
cash needs.
(b) Under a Letter of Credit, funds are obligated when the
Regional Administrator signs the Cooperative Agreement and
-4-
-------
DRAFT
9/26/86
sends it as an offer of award to the State; funds become
accessible to the State on an as-needed basis upon execution
of the Cooperative Agreement.
The State Participation manual provides additional information on
the Letter of Credit as a funding method.
D. Approval of State-Lead
1. The Regional Administrator will determine, on a case-by-case
basis, removal actions appropriate for State-lead. Factors the RA
should consider when evaluating a State's request to lead a
CERCLA-funded removal include, but are not limited to:
State experience in leading activities conducted under
the remedial program (e.g., IRM-type actions) that are
similar to the response actions required to clean up or
to stabilize the release at the site under evaluation for
State-lead.
State experience in responding to hazardous waste
spills/incidents independent of Federal involvement/funds.
Existence of a State Contingency Plan for hazardous
substance release response.
-5-
-------
DRAFT
9/26/86
2. A Removal Action Memorandum and Cooperative Agreement
Application are required for all State-lead removal actions. The
Action Memorandum will be an integral part of the Cooperative
Agreement and must be approved before an Agreement can be awarded
to the State. A copy of the approved Action Memorandum will be
made available to the State and will be provided when the Agreement
is awarded, if not before. All Cooperative Agreement Applications,
and amendments to the application, will be negotiated at the
Regional level and approved by the Regional Administrator. OSCs or
RPMs, as appropriate, will be the State's primary EPA contact for
developing and negotiating Cooperative Agreements.
(a) EPA will prepare the Action Memoranda in accordance with
current program procedures, and in close cooperation/
"consultation with the State. EPA will always select the
response/activities to be taken at the site in consultation
with the State. The Action Memorandum must document that the
removal will be State-lead and identify what cleanup or
stabilization actions must be taken within a specified cost
and duration. The Action Memorandum must also identify
activities that will be Federal-lead (e.g., enforcement
activities).
• - In accordance with program policy and procedures,
the AA, OSWER must approve all Action Memoranda for
removal actions initially or ultimately expected to
-6-
-------
DRAFT
9/26/86
exceed the statutory limitation on cost; otherwise,
the RA will approve the Action Memoranda, including
exemptions to the limitation on time.
Changes in project scope, and exemptions to the
statutory limitations on cost and duration must be
documented and approved in accordance with current
removal program procedures before the Cooperative
Agreement is amended accordingly.
These procedures are discussed briefly in Section III of this
guidance and in more detail in the Superfund Removal
Procedures manual.
(b) States are responsible for preparing the Cooperative
Agreement package, which must include:
Cooperative Agreement Application, EPA Form 5700-33
State certification letter
Procurement System Certification, EPA Form 5700-48
Intergovernmental review comments
Quality assurance/quality control plan
Community relations plan, if applicable
Site safety plan.
-7-
-------
DRAFT
9/26/86
States may supply the required site safety plan and community
relations plan after the Cooperative Agreement has been
signed. However, these plans must be submitted to EPA for
review before any on-site activity can begin. In these
situations, either the Cooperative Agreement Application or a
special condition must provide that the State will provide
these plans before on-site activity begins.
E. Types of Cooperative Agreements
A State must enter into a Cooperative Agreement with EPA before
beginning a response action using CERCLA funds. A Cooperative Agreement
is the mechanism established by the Federal Grant and Cooperative
Agreement Act that a Federal agency uses to provide States or localities
with funding assistance while retaining significant involvement in the
project. The Cooperative Agreement documents the respective
responsibilities of the recipient of Federal funds and the agency
providing the assistance. Cooperative Agreements are used to:
Transfer funds for specific project(s)
Document the State's statutory and regulatory responsibilities
and assurances
-8-
-------
DRAFT
9/26/86
Approve project-specific budgets and scopes of work
Identify any special program requirements related to the
project
Document the Federal agency's role and responsibilities during
the project.
There are two types of Cooperative Agreements: 1) a site-specific
Cooperative Agreement; and 2) a multi-site Cooperative Agreement
(MSCA). State-lead removal actions may be executed via a site-specific
or multi-site Cooperative Agreement.
1. Site-specific Cooperative Agreements are appropriate mechanisms
to fund response activities required at a single site. These
agreements cover one removal action at one site and can be amended
to include additional removal activities and cost requirements
necessary to complete the action at that site.
2. A multi-site Cooperative Agreement is an "umbrella" Cooperative
Agreement that, under one funding document, may include several
response activities at more than one site within a State. States
requesting to lead removal actions at more than one site may choose
to develop a MSCA or an existing MSCA may be amended to include a
-9-
-------
DRAFT
9/26/86
State-lead removal. If the State agency identified to lead the
response is different from the agency certified under the existing
MSCA. the State must submit to EPA a State certification letter for
that agency.
F. State Assurances
In order to enter into a Cooperative Agreement for a removal
action, EPA policy requires States to provide assurances for (1) sharing
in the cost of cleanup when appropriate, (2) providing a facility in
compliance with the Resource Conservation and Recovery Act for off-site
treatment, storage, or disposal of substances taken from a site, and (3)
assuming responsibility for operation and maintenance (O&M). OSCs/RPMs
are responsible for monitoring State compliance with these requirements.
1. States are not required to share in the cost of a removal
action, unless that removal is conducted at an NPL site that was
publicly owned (sites owned by a State or a political subdivision
thereof) at the time of a release and a remedial action is
ultimately undertaken at the site. In these situations. States are
required to pay 50 percent of all removal costs. A State is not
required to pay its cost share for the removal until the remedial
action is funded by EPA.
2. States must ensure the availability of a hazardous waste
treatment, storage or disposal facility, if the remedy requires
-10-
-------
DRAFT
9/26/86
off-site treatment, storage, or disposal of hazardous substances.
Such facilities must be in compliance with Subtitle C of RCRA and a
RCRA compliance inspection must have been completed at the facility
within the six-month period prior to the receipt of wastes.
According to current EPA policy on off-site disposal (OSWER
Directive #9330.2-3), non-time-critical removal actions are subject
to these requirements. SPOs should contact their EPA-designated
OSC/RPM or Regional RCRA Off-site Contact (RROC) for assistance in
identifying disposal facilities and resolving issues pertaining .to
off-site disposal.
3. Removal program policy allows for payment of O&M for only six
months maximum and requires the State to assume responsibility for
O&M at the conclusion of the removal action. EPA may include funds
for O&M for the project period covered in the Action Memorandum.
However, a State must begin to operate and maintain the remedy at
the conclusion of the CERCLA-financed action. The Cooperative
Agreement Application or a special condition must provide an
assurance that the State will assume responsibility for all future
maintenance as long as necessary once the action is complete.
II. DEVELOPMENT. OF COOPERATIVE AGREEMENT APPLICATION PACKAGES
The State is responsibile for developing the Cooperative Agreement
Application package. While the OSC/RPM will be the State's primary EPA
contact for developing and negotiating Cooperative Agreements for removals,
-11-
-------
DRAFT
9/26/86
Regions may elect to assign administrative responsibilities to Regional
staff other than the OSC/RPM, usually a Regional Project Officer (RPO).
State officials responsible for response agreements, usually State Project
Officers (SPOs)*. should work closely with an EPA-designated OSC/RPM when
developing the Cooperative Agreement. Additional support will be available
through the ERD Regional Coordinator in EPA Headquarters. OSCs/RPMs and OHM
Coordinators are responsible for reviewing the Cooperative Agreement
Application for accuracy and completeness.
A. The Cooperative Agreement Application
The Cooperative Agreement Application package must include EPA Form
5700-33 and several attachments. The application form and the required
attachments are briefly discussed below. Additional information is
provided in EPA's manual entitled State Participation in the Superfund
Program.
1. When applying for CERCLA funds, a State must complete EPA Form
5700-33, Application for Federal Assistance — State and Local
Nonconstruction Programs. This form consists of five parts:
Part I - General Summary Information
- Part II - Project Approval Information
* While the term State Project Officer is used throughout the guidance to
denote a State1s, counterpart to an EPA OSC/RPM, it is recognized that
different terminology may"Ee used among the States.
-12-
-------
DRAFT
9/26/86
Part III - Budget Information
Part IV - Project Narrative Statement
Part V - Assurances.
General instructions for completing each part are included in the
application form.
2. Attachments to the Cooperative Agreement Application
A Cooperative Agreement Application for removal actions must
include the following attachments:
State certification letter
Procurement System Certification, EPA Form 5700-48
Intergovernmental review comments
Quality assurance/quality control (QA/QC) plan
Community relations plan, if applicable
Site safety plan.
These attachments are briefly discussed below. More detailed
information is provided in the State Participation manual.
(a) A certification letter must be included in the
Cooperative Agreement Application package. This letter must
be signed by the Governor or Attorney General and must
indicate that the agency entering into the agreement has both
-13-
-------
DRAFT
9/26/86
the authority to do so and to make the assurances required by
CERCLA section 104(c)(3). This letter may be a generic,
one-time statement that covers all sites within the State, or
it may be site-specific. In the former case, if the
application covers activities at several sites, the State must
submit a site-specific letter for each site.
(b) In order to conduct procurement activities under the
Superfund program, a State either must have an internal
procurement system that meets the intent of EPA's regulation
Procurement Under Assistance Agreements (40 CFR Part 33), or
it must follow Part 33 when it conducts procurement and allow
EPA oversight. The procurement certification form, EPA Form
.5700-48, demonstrates whether or not the State's procurement
system is equivalent to EPA requirements. A State is required
to certify its system to EPA once every two years. If the
State has previously provided this certification to EPA, the
State needs only to indicate in Part A of the form the date
the certification was originally submitted. If a substantial
amount of construction is required in the contract for cleanup
services, then the provisions of 40 CFR 33 are applicable and
the Cooperative Agreement must contain a provision or
condition to this effect.
-14-
-------
DRAFT
9/26/86
(c) In accordance with Executive Order 12372, State-lead
removal proposals are subject to intergovernmental review
before EPA will obligate funds. Intergovernmental review is
implemented under 40 CFR Part 29, Intergovernmental Review of
EPA Programs and Activities. Under this regulation, if the
State has an established review process that includes the
project in question, an applicant must formally notify its
designated single point of contact, as well as any directly
affected governmental entities and areawide or regional
planning agencies that it is seeking Federal assistance. A
copy of the notification should be sent to the appropriate EPA
Regional office. Any comments received in response to this
notification must be attached to the Cooperative Agreement
'Application. Funds will not be obligated to the State until
representatives of the State have had an opportunity to
comment on the proposed project(s). The intergovernmental
review process should be initiated at least one quarter prior
to obligation of funds for response at a site. This lead time
is necessary to meet the required 60-day State review period
and to allow time for EPA to respond to State and local
comments. EPA must accommodate, or explain why it cannot
accommodate, each comment received during the formal process
before it can award funds to the State.
-15-
-------
DRAFT
9/26/86
(d) Section 300.67(b) of the revised National Contingency
Plan (NCP) requires a formal community relations plan (CRP)
for all removal actions that last longer than 45 days. States
are therefore required to develop and implement a CRP for all
removal actions that are expected to extend beyond this
designated time frame. Additional information on CRPs and
guidance for developing these plans is provided in the
Suoerfund Removal Procedures manual. As noted earlier. States
may submit the CRP separately from the Cooperative Agreement
Application package. In that event, either the Cooperative
Agreement Application or a special condition must state that
the State will submit the CRP prior to beginning on-site
activities. The CRP will be subject to EPA review and
-approval.
(e) As required by 40 CFR Part 30.302(d)(2) a State must
submit within 30 days of receiving its Cooperative Agreement
the QA/QC procedures it intends to use in environmental
monitoring. These include any sample collection and analysis
activities that may be necessary during the response. One
generic QA/QC plan is sufficient for an MSCA. In addition,
hovever. States are required to develop a site-specific
Quality Assurance Project Plan (QAPP) to describe the
measurement systems it intends to use on site.
-16-
-------
DRAFT
9/26/86
(f) States are required to have a site safety plan in place
before field activities can commence. A site-specific plan
must be developed for each removal action. Each safety plan
must provide for the protection of on-site personnel and area
residents. Plans must be consistent with site conditions and
must cover all phases of incident operations. Site safety
plans must also comply with all applicable Federal, State and
local Occupational Safety and Health (OSH) laws. Each
site-specific safety plan must be submitted to the OSC for
review to ensure removal program requirements are met.
Additional information on site safety plans is provided in the
Superfund Removal Procedures manual. Site safety plans may be
submitted to EPA after the Cooperative Agreement has been
signed providing that the application or a special condition
provides that the State that the plan will be submitted for
EPA review before on-site activities begin. -
III. ADMINISTERING COOPERATIVE AGREEMENTS
OSCs/RPMs and SPOs are responsible for ensuring that response activities
are conducted according to the agreed-upon scope of work, budget, and
schedule included in the Cooperative Agreement and Action Memorandum. The
State official responsible for directing response activities, usually the
State Project Officer, must ensure that all on-site activities are
consistent with CERCLA, the NCP and removal program policies and
procedures. Daily on-site presence by SPOs therefore may be required. The
-17-
-------
DRAFT
9/26/86
OSC/RPM and SPO should maintain close communication at all times to monitor
progress effectively. This can include meetings, phone calls, written
correspondence, and review of contractor monthly progress reports. In
addition, the OSC/RPM and SPO should notify each other immediately of any
unscheduled or unanticipated events (e.g., a fire or explosion on site that
may require an emergency response by EPA) that may have a direct impact on
the project and/or on the terms of the response agreement.
This section briefly discusses State reporting and cost documentation
requirements, monitoring State financial commitments and procedures for
agreement adjustments. Additional information on response agreement
administration and reporting and cost documentation requirements is provided
in the State Participation manual.
A. Reporting Requirements
When entering into a Cooperative Agreement, States are subject to a
number of reporting requirements, including submittal of technical
progress reports, financial status reports and other reports as may be
required in the Cooperative Agreement. These reporting requirements are
discussed briefly below.
1. For removal actions, States must submit technical progress
reports on a monthly basis and at the end of each response. These
reports are submitted to the Region and present information on
activities performed during the month and on total work to date.
-18-
-------
DRAFT
9/26/86
(a) The OSC/RPM is responsible for reviewing technical
progress reports and providing any necessary direction or
assistance to the State, as required. The content of State
reports should be tailored to specific requirements of the
response activities as covered in the Action Memorandum and
the provisions of the Cooperative Agreement. All information
should be site-specific and the OSC/RPM and SPO should reach
an initial agreement on the content and format of these
reports during negotiation of the Cooperative Agreement.
(b) In addition, the State must prepare and submit a final
technical progress report to the OSC/RPM within 45 days after
the completion of the removal action. Removal actions are
complete when the scope of work in the Action Memorandum has
been completed and the State has demobilized.
2. Once a removal action has been completed. States must submit a
Financial Status Report (FSR), Standard Form 269, and any ancillary
reports. Ancillary reports include statistical or monitoring data,
operation and maintenance manuals and other reports as required in
the Cooperative Agreement. The State should submit an FSR and all
ancillary reports to the OSC/RPM within 45 calendar days after
completion of the removal action. In addition, a Final OSC Report
must be prepared at the conclusion of each removal action in
-19-
-------
DRAFT
9/26/86
accordance with the NCP and removal program policy and procedures.
This report will be prepared by the SPO, in consultation with the
OSC/RPM, and must be signed by the SPO and OSC/RPM.
B. Cost Documentation Requirements
When entering into a Cooperative Agreement, States must also adhere
to certain cost documentation requirements as set forth in 40 CFR
Parts 30 and 33 and all additional Superfund-specific requirements or
procedures for documenting State expenditure of CERCLA funds.
1. For removal actions. State accounting and recordkeeping
activities must be detailed on a site-specific basis to ensure
'effective cost recovery. States must also track and report
expenditures by object class category. Superfund procedures
include documentation and recordkeeping measures intended to
protect the integrity of site data, such as:
(a) Prohibiting the replacement of original material in files
with copies unless authorized in writing by EPA
(b) Prohibiting archive research unless authorized in writing
• by EPA.
2. In addition, the Superfund program adheres to the general
Agency-wide policy that, when requested by EPA, States must
-20-
-------
DRAFT
9/26/86
provide documentation to support cost recovery litigation and
related efforts. Documentation must be available for use as
evidence to answer questions such as what work was authorized,
what work was completed, what charges were incurred for the
work, and what payments were made for the work.
C. Monitoring Financial Commitments
OSCs/RPMs are responsible for ensuring that State expenditure of
CERCLA funds corresponds to technical progress at the site and is within
the cost ceiling in the Action Memorandum and Cooperative Agreement.
Total Letter of Credit drawdowns may not exceed the amount obligated for
the response in the Cooperative Agreement.
1. The OSC/RPM should review State drawdowns on a monthly basis,
using drawdown information available from the Regional financial
management office. Key documents for this review include the
Financial Management System (FMS) Outlay Report and the State's
monthly progress and financial reports.
2. Funds awarded under a Cooperative Agreement are assigned an
activity (e.g., removal action) and site code. The OSC/RPM should
ensure that the State is drawing funds from the proper account for
the site and for the action funded. The account from which
drawdowns are made, identified in the FMS Outlay Report and the
State monthly report, must match the action being conducted.
-21-
-------
DRAFT
9/26/86
3. Under a multi-site Cooperative Agreement, when a removal at a
particular site has been completed, remaining funds may be used to
fund removal activities at another site covered by the same
Agreement. Such funds, however, must be officially transferred to
the appropriate account. A transfer of funds between sites under a
MSCA requires a formal amendment to the Cooperative Agreement to
move the funds from one account to another. Funds remaining in a
credit account at the completion of a removal should be deobligated
and returned to EPA unless the State requires additional funds to
support other removal actions covered in the same Cooperative
Agreement. All amendments to Cooperative Agreements will be
negotiated at the Regional level. This requirement will ensure
that the statutory limitation on cost is adhered to when there is a
need-to transfer funds.
D. Agreement Adjustments
Agreement adjustments consist of alterations in the amount, terms,
conditions, project period, project scope or some other administrative,
technical, or financial aspect of the Action Memorandum or Cooperative
Agreement. Depending upon the significance of the change, adjustments
to the Agreement can be made, either through formal amendments or in
writing, between the OSC/RPM and the SPO. Modifications to Action
Memoranda are subject to current removal procedures and policy. All
modifications to the initial Action Memorandum (e.g., ceiling increases.
-22-
-------
DRAFT
9/26/86
exemptions to the statutory limits on cost and duration) must be
documented in an amended Cooperative'Agreement, but only after the
Action Memorandum requesting the modification has been approved.
Circumstances where a Cooperative Agreement and Action Memorandum must
be formally amended are presented below.
1. A Cooperative Agreement must be amended when it requires a
significant change. These occur when:
Objectives and/or scope of the project, as funded, are
altered
Funds obligated under one accounting code will be used
for a different activity or a different site
There is any increase or'substantial decrease in the
project period or budget
A rebudgeting of funds occurs, such as a transfer between
cleanup services and another object class category or a
change in the amount of indirect costs
Changes to special conditions to the Cooperative
Agreement award document.
-23-
-------
DRAFT
9/26/86
(a) Formal amendments are not required for minor project
changes that are consistent with the project's objectives.
Minor changes include shifts between object class categories
(except as indicated above) and adjustments to the work plan
within the scope and objectives of the funded project. Minor
project changes should be approved in writing by the OSC/RPM
or the Regional Administrator, as appropriate.
(b) Responsibility for requesting and obtaining approval of
modifications to the Cooperative Agreement rests with the SPO
and OSC/RPM. The SPO or the OSC/RPM identifies the need for
an adjustment and the SPO initiates the approval process by
submitting a request to the Region. The OSC/RPM then
•determines whether a formal amendment is needed, and if so,
transmits the request to the Regional Administrator. If the
RA signs the amendment, it is sent to the State for acceptance
and is executed upon signature by an authorized State official.
2. According to standard removal program policy and procedures,
special requests, in the form of Action Memoranda, must be prepared
when the following are required subsequent to approval of the
initial Action Memorandum:
An increase in the project's established cost ceiling
-24-
-------
DRAFT
9/26/86
Exemptions to the statutory limitations on cost and
duration
Changes in scope of work
Changes necessary among cost categories where no change
in total project ceiling is required.
Guidance on the procedures for requesting, and obtaining approval
for these changes, is set forth in the Superfund Removal Procedures
manual. OSCs/RPMs are responsible for preparing these requests and
obtaining the necessary concurrence, as well as ensuring that the
Cooperative Agreement is amended accordingly.
IV. CLOSEOUT OF RESPONSE AGREEMENTS
In order to close out a Cooperative Agreement, EPA must determine that
the State has completed the removal action and complied with all applicable
administrative requirements under the agreement. The general closeout
responsibilities of the State and the OSC/RPM are briefly discussed below.
A. State Responsibilities
1. A State must complete the work specified in the Cooperative
Agreement and the Action Memorandum and produce the required
reports (e.g., final FSR and technical progress report), manuals,
-25-
-------
DRAFT
9/26/86
plans and other information. The State is responsible for ensuring
that all products and reports necessary for closeout are submitted
to EPA, as required.
2. The SPO is responsible for the completion of the final report
as described in the Cooperative Agreement including the reports and
activities as follows:
Draft and final technical report
Final FSR
Ancillary products such as O&M manuals
Property/equipment report
Other required reports.
B. EPA OSC Responsibilities
1. OSCs/RPMs are responsible for ensuring that the State has
provided all required reports and is in compliance with the
provisions of the Cooperative Agreement and Action Memorandum.
2. Specific OSC/RPM responsibilities are as follows:
• Reviews/inspects work in the project- and arranges for
acceptance or correction
-26-
-------
DRAFT
9/26/86
Reviews and approves required reports
Follows through on delinquencies or deficiencies
Ensures that all disputes and audit exceptions are
resolved
Transmits final determinations on any outstanding issues
Documents the closure in the official file
Maintains the official records.
The State Participation manual provides detailed guidance on closing out
response agreements. OSCs/RPMs should refer to the State Participation
manual for additional information on the requirements/procedures for closing
out Cooperative Agreements.
-27-
-------
DRAFT
9/26/86
Attachment 1
EXAMPLES OF STATE-LEAD IRM PROJECTS CONDUCTED UNDER THE REMEDIAL PROGRAM
Excavation and off-site disposal of surface and
buried waste materials and contaminated soil
Fence construction
Bank stabilization
Water supply treatment of municipal well
Installation of carbon filters on private
wells
Construction of lagoon perimeter dike
Temporary cap for lagoons
Posting of cautionary signs along creek
Storm water control
------- |