United Slates
           Environmental Protection
             Office of
             Solid Waste and
             Emergency Response
DIRECTIVE NUMBER:  93?5.i-04-w

TITLE: CERCIA Funding of State-lead Removals







    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

       United Slates Environmental Protection Agency
               Waihmgton, DC 20460
OSWER Directive Initiation Request
                       1. Directive Number
                                   2. Ongma'io/ Information
Name of Contact Person
Donald Kraft
Mail Coda
Telephone Number
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
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
hij Request Meets OSWER Directives System Format
 . Signature of Lead Office Directive^ Cjfcrdinator
 Name ah"d Tide of Approving Offic
    Timothy Fields, Jr.,  Director/ERD


                         WASHINGTON. D.C. 20460
                                   29 1986
                                                                 OFFICE OF
                                                      SOLID WASTE AND EMERGENCY RESPONSE
                                                       OSWER DIRECTIVES  9375.i-4-w

        SUBJECT:  Draft Guidance on CERCLA-Funded, State-Lead

          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
               0  Section III:  Administering Cooperative Agreements
               0  Section IV:   Closeout of Response Agreements

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.

cc:  Don Kraft,  ERD
     Hans Crump, EPD/ROB
     John Riley, ERD/RSCB


    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.


     (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


          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).


     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


C.  Funding Mechanism

     1.  State-lead removal actions will be funded via a Letter of


          (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

          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 experience in responding to hazardous waste

               spills/incidents independent of Federal involvement/funds.

               Existence of a State Contingency Plan for hazardous

               substance release response.

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


         • -    In accordance with program policy and procedures,

               the AA, OSWER must approve all Action Memoranda for

               removal actions initially or ultimately expected to



          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.

          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

          Approve project-specific budgets and scopes of work

          Identify any special program requirements  related to the


          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

     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


         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.


    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,


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


         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.

          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


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.

 (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.

 (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


 (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.

              (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. -


    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


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.


     (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

     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


          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.


     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.

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


               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.

     (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

                   Exemptions to the statutory limitations  on cost  and


                   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.


    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,


     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

                   Reviews and approves required reports

                   Follows through on delinquencies or deficiencies

                   Ensures that all disputes and audit exceptions are


                   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.


                             Attachment 1

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

Construction of lagoon perimeter dike

Temporary cap for lagoons

Posting of cautionary signs along creek

Storm water control