United States
           Environmental Protection
           Agency
             Office of
             Solid Waste and
             Emergency Response
  v>EPA
 DIRECTIVE NUMBER
9375.1-4-p
            TITLE: State Participation in the Superfund Program Manual
                Appendix P - Superfund Supplemental Guidance
                              March 6, 19Rfi

                              March fi, IQBfi

                              OERR
APPROVAL DATE:

EFFECTIVE DATE:

ORIGINATING OFFICE:

X0 FINAL

D DRAFT

  STATUS:
            REFERENCE (other documents):

            9375.1-2A  State Participation in the Superfund Remedial
                   Program, February 1984 edition.
S WER      OS WER      OS WER
   DIRECTIVE    DIRECTIVE    Dl

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  &EPA
                            United Slates Environmental Protection Agency
                                   Washington. DC 20460
                     OSWER  Directive Initiation Request
                                                                       Interim Directive Number
                                                 H'f
                                      Originator Information
 Name of Contact Person .  . ,
    DeDoran  Swichkow,
 Lead Office
   E3 OEHH
   D OSW
               D OUST
               D OWPE
               D AA-OSWER
                       Approved lor Review
Signature of OHiee Director
Date
 3/f/ft
 Tula
     APPENDIX P,  Superfund Supplemental Guidance
Summary ol Directive
     Provides  directives  that  are pertinent  to  Superfund  implementation-
     as  a  means  of ensuring that State/Regional  officials are  apprised
     of  such  guidance as  soon  as possible.   All-subject  matter .i-n  this
     Appendix  will eventually  be integrated  into appropriate  chapters/
     appendices  of the  manual  as part of  the update process.
Type ol Directive (Manual, Policy Dirtctn*. Announcement, tie.)
     Addendum to  State  Participation  in  the Superfi
     Program Manual
                                                          Status
                                                          ndD Draft
                                                             & final
                                              D New
                                              roi
                                              L2J Revision
Does mis Directive Supersede Previous Directive^)?   ffQ Yea
f "Yea" to Either Question. What Directive (numiisr, tttttl
     Appendix P,  issued   12/84
                                         ("1 No   Does It Supplement Previous Directives)?   Q Yes
ieviaw Plan
  D AA-OSWEH   D OUST       t D OECM
  $ OERR      D OWPE       \D OGC
  D OSW  .     D Regions       D OPPE
                                            D
                 Other [Specify
This Request Meets OSWEfl Directives System Format
Signature ol Lead Office Directives Otticer
A IfaiM IwwwrfiM •
Signature ol OSWER Directives Officer
Date
3I4/&
Date

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          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                      WASHINGTON. D.C 20460

                                                         MAR - 6 J9
                                                    9375.1-4-p
                                                           C.F
MEMORANDUM

  SUBJECT:  Addenda to the State Participation  in the Superfund
            Program manual--Revisions ^o  Appendix P. Superfund
            Supplemental Guidance
     FROM:  Sam Morekas, Chief
            Statp and RegionalxCoordination
            Hazardous Site Control Division


       TO:  Mailing List


     Since the integration of guidance into this manual can
at times he a lengthy process, the attached Appendix P,
Superfund Supplemental Guidance (previously entitled,
Splected Policy Papers) is intended to inform State and
Regional Officials of guidance as quickly as possible through the
inclusion of Agency directives.  Subject matter will eventually
be incorporated into the individual chapters/appendices as
the manual is updated.  Each time the manual is revised, the
appropriate directives will  be eliminated from Appendix P.

     An initial  entry of Supplemental Guidance is attached
for inclusion as Appendix P into the State Participation
manual.  The version of Appendix P you currently have should
be discarded and be replaced with this attachment since the
selected policy papers have already been integrated elsewhere
in the manual.
Attachment

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                                                             3/5/86
                                                            9375.1-p
Date/
Addendum
    Topic
fa/22/84 »1   Site Closeout
             Minority and
             Women's Business
             Reporting

             Changes to IG
             Audit
9/12/84 #2
9/28/84 #3
Quality Assurance
Project Plan

Revised Letter of
Credit Procedures
Provision
CliANGEb TO DATh


   Instruction

    Ijew pages

 .  New page
 .  New pages


 .  New page
Change
"... which must
oe sent within
120 days." to
"... which
must be sent
within 90 days."

Add, as the
second sentence
in the para-
graph, "In
addition, the
Award Official
will send the
State a copy of
the final audit
report within 15
days of its
receipt."

Change "Ihe re-
sponse must be
dispatched with-
in 120 days..."
to "Ihe response
must be dis-
patched within
90 days..."

New pages
Replacement pages
                        Location/Page

                    .  Appendix F, Pages F-22
                      and 23
                    .  Appendix H, Page H-23
                    .  Appendix P, Pages
                      P-37-P-47

                    .  Appendix F, Page F-24
                                               Appendix C, Page C-12,
                                               first complete paragraph
                                                            Appendix C, Page C-12
                                                            first complete paragraph
                                                            Appendix C, Page C-12
                                                            footnote
                          Appendix L,  formerly
                          reserved

                          Appendix F,  Pages F-3
                          through F-6

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                                                               3/5/86
                                                              9375.1-p
                            GiANGEb TO DATE  (Continued)
liato/
Addendum
Topic
12/10/64 ft 4  vnalti-Site Coop-
             erative Agreements
Instruction

 Replacement
 pages
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 pages
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                                      page
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                                      pages
                                      New page
                                      Change  "...at
                                      quarterly  inter-
                                      vals commencing
                                      at the  start of
                                      the project." to
                                      "...within 30
                                      days of the end
                                      of the  Federal
                                      tiscal  quarter."
                                      New pages

                                      Replacement
                                      pages
                                      New pages

                                      Replacement
                                      pages
                                      Replacement
                                      pages
                                      New pages
  Location/Page

Table of Contents, Pages
xiii tnrough xvii
List or Exhibits, Pi>.gt->t?
xvii and xix
List of Acronyms, Pages
a - through e
Chapter II, Pages II-l
through b
Chapter II, Page II-7
and Exhibit II-2
Chapter III, Page 111-17

Chapter III, Pages
I11-18 through 27 and
Exhibits III-10 and
III-ll
Chapter IV, Pages
W-5 through IV-7
Chapter IV, Pages IV-8
through IV-11
Chapter V, Page V-7 ana
V-B
Chapter V, Page V-9
Appendix E, Pages E-l
through E-22
Appendix E, Page E-23
Appendix F, Page F-16,
Section K, indented
paragraph
                                           Appendix  F,  Pages  F-25
                                           and F-26
                                           Appendix  J,  Pages  J-l,
                                           J-2,  and  J-7
                                           Appendix  J,  Pages  J-8
                                           and J-9
                                           Appendix  N,  Pages  N-l
                                           through N-6
                                           Appendix  P,  Pages  P-l,
                                           P-2,  and  P-47
                                           Appendix  P,  Pages  P-48
                                           through P-51
                                          IV

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                                                               3/5/86
                                                              9375.1-p
Date/
Addendum t       Topic

1/4/85  $5   Advance Match
1/11/85 #6   Site Safety Plan
             Guidance

S/2/85 37    Obtaining Equipment
             Under a CERCIA
             Cooperative Agreement

9/17/85 #8   Intergovernmental
             Review Procedures
             State Cooperative
             Agreements for  Pre-
             Remedial Activities

12/18/85 #9  Action Memorandum
             Guidance
12/20/85 #10 Model Statement of
             Work for a Remedial
             Investigation/
             Feasibility Study

12/20/85 #11 Site Safety Plan
             Guidance
 1/31/86 #12 Quality Assurance
             Project Plan
3/5/86 #13  Superfund
              Supplemental
              Guidance
'1C DATh (Contmueo)


Instruction

 New pages


 New pages


 New pages



 Replacsoent page

 Replacement pages




 l^tew pages
Replacement pages
Replacement pages
Replacement pages




Replacement pages

Replacement pages


Replacement pages



 New pages
                        Location/Page

                      New Apperuux S, Pages
                      S-l through S-rj

                      Appenuix K,  formerly
                      reserved

                      New Appendix T, Pages
                      T-l through T-15
                      Table of Contents, Pages
                      xin through xix
                      List of Exhibits, Pages
                      xx and xxi
                      Appendix D, Pages D-l
                      through D-28

                      Appendix A, formerly
                      reserved
                    .   Table of Contents, Pages
                       xiii  through xix
                    .   Appendix B, Pages
                       B-l through B-9

                    .   Table of Contents, Pages
                       xiii  through xix
                    .   Appendix E, Pages
                       E-l through E-21

                    .   Table of Contents, Pages
                       xiii  through xix
                    .   Appendix M, Pages M-l
                       through M-28

                    .   Table of Contents, Pages
                       xiii  through xix
                    .   Appendix L, Pages L-l
                       through L-12

                    'Table  of contents,  pages
                     x111 new Appendix  P,
                     xv11l  pages p-1 -  p-16
                                        iva

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                          TABLE OF CONTENTS
                                                    3/5/86
                                                    Revised Page xiii
                                                    9375.1-p
LIST OF ACRONYMS AND ABBREVIATIONS
   I.   INTRODUCTION
       A.  Purpose of the Manual
       B.  Background — Key Terms
           B.I  Remedial Response
           B.2  Remedial Response Agreements
           B.3  State Assurances
                B.3.a   Cost-Sharing
                B.3.b   Off-Site Treatment, Storage,
                        or Disposal
                B.3.C   Operation and Maintenance (O&M)
           B.4  State Credits
       C.  Overview of the Manual
  II.  CONCURRENT ADMINISTRATIVE EVENTS
       A.  Initiation of Enforcement Activities
       B.  Initiation of Forward Planning
       C.  Development of Site-Specific Schedules
       D.  Development of the Remedial
           Accomplishments Plan (RAP)
       E.  Development of the Action Memorandum
       F.  Identification and Review of State
           Credit Submissions
       G.  Intergovernmental Review
  III.  DEVELOPMENT OF COOPERATIVE AGREEMENT
       APPLICATION PACKAGES
       A.  Completion of the Cooperative Agreement
           Application Form
PAGE   DATE
   a  12/10/84
 1-1
 1-2
 1-3
 1-4
 1-4
 1-5
 1-5
 1-6
 1-7
 1-7
 1-7
 II-l  12/10/84
 II-2
 11-2
 II-5
 II-5

 II-5
 II-6

 11-7
III-l

III-2
                                   Xlll

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                                             3/5/86
                                             Revised Page xiv
                                             9375.1-p
    A.I  Part IV - Project Narrative
         Statement

    A.2  Part III - Project Budget
 PAGE

III-2


111-3
                                                         DATE
         A.2.a   Allowable Costs                 III-4
         A.2.b   Enforcement Costs               II1-5
         A.2.c   Calculation of State Cost Share III-5

B.  Development of Cooperative Agreement         II1-6
    Provisions

    B.I  General Assistance Requirements         II1-6
    B.2  Superfund Program Requirements          111-7

         B.2.a   Provision of CERCLA             II1-8
                 Section 104(c)(3) Assurances
         B.2.b   The National Environmental      111-9
                 Policy Act of 1969 (NEPA)
         B.2.C   Quality Assurance/Quality      111-10
                 Control (QA/QC)
         B.2.d   Site Safety Plan               III-ll
         B.2.e   Expedited Procurement          II1-12

C.  Completion of the Procurement System        II1-12
    Certification Form

D.  Other Submissions                           II1-13

    D.l  Community Relations Plan (CRP)         111-13
         D.I.a   Draft Community Relations      II1-13
                 Plan
         D.l.b   Complete Community             111-14
                 Relations Plan
    D.2  Certification Letter                   111-15
    D.3  Intergovernmental Review Comments      111-15

E.  Deviation Requests to Permit the            111-15
    Allowability of Pre-Award Costs

F.  Multi-Site Cooperative Agreements           II1-17

    F,l  Activities That May Be Included        111-18
         in Multi-Site Cooperative
         Agreements
    F.2  Intergovernmental Review               II1-19
    F.3  Contents of a Multi-Site Cooperative   II1-20
         Agreement
       12/10/84
                            xiv

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                                                   3/5/86
                                                   Revised Page xv
                                                   0375.1-p
              F.3.a   Cooperative Agreement
                      Application Form
              F.3.b   Multi-Site Cooperative
                      Agreement Application
                      Provisions
              F.3.c   Procurement System
                      Certification Form
              F,3.d   Certification and
                      Enforcement Letters
         F.4  Accounting for Multi-Site
              Cooperative Agreements
         F.5  Administration of Multi-Site
              Cooperative Agreements
              F.5,a   Project Management
              F.s.b   Project/Budget Periods
              F.S.c   Quarterly Reports

IV.   DEVELOPMENT OF EPA-LEAD REMEDIAL PLANNING
     AGREEMENTS

     A.   The Scope of Work for Remedial Planning

     B.   Documentation of Terms and
         Responsibi1it ies

         B.I  EPA Responsibilities
         B.2  State Responsibilities
         B.3  General Terms

     C.   Other Submissions

         C.I  Community Relations Plan (CRP)
         C.2  Intergovernmental Review Comments

     D.   Management Assistance Cooperative
         Agreements

 V.   DEVELOPMENT OF SUPERFUND STATE CONTRACTS

     A.   Development of the Statement of Work (SOW)

     B.   Development of State Cost-Sharing Terms

         B.I  Calculation of the State's Cost Share
         B.2  Negotiation of Payment Terms

     C.   Documentation of Other Terms and
         Responsibilities
  PAGE   DATE

111-20

111-23



111-23

111-23

111-24

111-26

111-26
111-26
111-27

  IV-1



  IV-3

  IV-3
  IV-3
  IV-4
  IV-4

  IV-5

  IV-5
  IV-6

  IV-6  12/10/84
   V-l

   V-2

   V-2

   V-2
   V-3

   V-4
                                 XV

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                                                    3/5/86
                                                    Revised Page xvi
                                                    9375.1-p
          C.I  EPA Responsibilities
          C.2  State Responsibilities
          C.3  General Terms
      D.  Other Submissions
          D.I  Community Relations Plan (CRP)
          D.2  Certification Letter
          D.3  Intergovernmental Review Comments
      E.  Multi-Site Superfund State Contracts
PAGE   DATE
 V-4
 V-5
 V-6
 V-7
 V-7
 V-8
 V-8
 V-8  12/10/84
 VI.  EXECUTION OF REMEDIAL AGREEMENTS                  VI-1
      A.  Review of the Draft Agreement                 VI-i
          A.I  Review of the Draft Cooperative          VI-2
               Agreement Application Package
          A.2  Review of the Draft EPA-Lead             VI-2
               Submission
      B.  Final Regional Review and Preparation         VI-2
          of the Concurrence Package
      C.  Approval and Execution                        VI-4
VII.  ADMINISTRATION OF REMEDIAL AGREEMENTS            VII-1
      A.  Monitoring Financial Commitments             VII-l
          A.I  State Drawdowns Under a Cooperative     VII-2
               Agreement
          A.2  State Payment of Cost Share Under       VI1-3
               a Superfund State Contract
      B.  Monitoring Technical Commitments             VI1-3
          B.I  Monitoring Site Activities              VII-4
          B.2  Monitoring State Assurances and         VII-5
               Compliance with Special Conditions
      C.  Coordinating EPA-Lead Remedial Agreements    VII-5
          with Performance Agreements
      D.  Documenting Remedial Activity                VI1-6
                                  xvi

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                                                    3/5/86
                                                    Revised  Page  xvli
                                                    P375.1-p
       E.
D.l  Regional Files
D.2  EPA Headquarters Files
D.3  State Files

Documenting Completion of Remedial
Implementation [RESERVED]
VIII.  AGREEMENT MODIFICATIONS

       A.  Project Adjustments

           A.l  Adjustments to State-Lead Projects
           A.2  Adjustments to EPA-Lead Projects

       B.  Initiation of Remedial Design and
           Remedial Action

           B.I  Records of Decision (RODs)
           B.2  Incorporating Remedial Design and
                Remedial Action into an
                Agreement Between EPA and the State

       C.  Initiation of Operation and Maintenance
                                                         PAGE   DATE

                                                        VII-6
                                                        VII-6
                                                        VII-7
                                            VIII-1

                                            VIII-1

                                            VIII-1
                                            VIII-2

                                            VIII-3
                                            VIII-3
                                            VIII-6
                                            VIII-7
                                  xvii

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                                                    3/5/ae
                                                    Revised Pagp xvi i i
                                                    P375.1-p
APPENDICES
Introduction
Appendix A -
Appendix B -
Appendix C -

Appendix D -

Appendix E -

Appendix F -

Appendix G -

Appendix H -

Appendix I -
Appendix J -
to the Appendices
   PA/SI Guidance
   Action Memorandum Guidance
A-l
B-l
9/17/85
12/20/85
   Procedures for Developing and Processing  C-l
   CERCLA State Credit Claims
   Procedures for Implementing Intergovern-  D-l  9/17/85
   mental Review
   Model Statement of Work for State-lead    E-l  12/10/84
   Remedial Investigation/Feasibility Study
   Projects
   Sample Cooperative Agreement Application  F-l
   Provisions
   Sample Cooperative Agreement Application  G-l
   Package
   Sample Articles for Superfund State       H-l
   Contracts and Other EPA-Lead Remedial
   Agreements
   Sample Superfund State Contract           1-1
   Sample Certification Letters              J-l  12/10/84
Appendix K -

Appendix L -

Appendix M -
Appendix N -

Appendix 0 -

Appendix P -
Appendix Q -
   Sample Community Relations Plan Format
   and Sample Plan (CRP)
K-l
   Sample Quality Assurance/Quality Control  L-l  1/31/86
   Plan
   Sample Site Safety Plan                   M-l  12/20/85
   Instructions for Using Superfund Letter   N-l  12/10/84
   of Credit Account Numbers Under
   Cooperative Agreements
   Record of Decision (ROD)/Enforcement      0-1  1/17/86
   Decision Document (EDO) Guidance
   Superfund Supplemental  Guidance            P-l    3/5/86
   Glossary of Terms                         Q-l
                                  XVlll

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                                                    3/5/86
                                                    Revised Page xix
                                                    9375.1-p
Appendix R -    List of References                        R-l

Appendix S -    Advance Match Procedures                  S-l  1/4/85

Appendix T -    Obtaining Equipment for Use Under         T-i  8/9/85
                a CERCLA Cooperative Agreement
                                   xix

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                                   3/5/86
                                   Revised
          APPENDIX P
SUPERFUND SUPPLEMENTAL GUIDANCE
       OSWER DIRECTIVE
         9375.1-4-p

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                                          3/5/86
                                          Revised Page p-1
                                          Directive No.
                                           9375.1-4-p
                          APPENDIX P

                Superfund Supplemental  Guidance


     Prior to being incorporated into the State Participation
manual, most guidance is initially issued as  an Agency  directive,
intended to provide a perspective and understanding of  a  specific
policy and/or procedural matter affecting Superfund implementation
Once issued, the topic covered by a directive is integrated
into this manual  as detailed guidance.   This  integration,
can at times be a lengthy process, causing significant  delays
in the dissemination of the  guidance.

     Therefore, in order to  ensure that State and Regional
officials are apprised of such guidance as soon as  possible,
all directives pertinent to  Superfund implementation are
distributed for inclusion in Appendix P,  Superfund  Supplemental
Guidance for immediate use and reference.  Subject  matter
eventually will be integrated into appropriate chapters/appendices
of the manual as part of the update process.   Once  Integrated
into the manual,  the directives will  be eliminated  from
Appendix P.
                             P-1

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            UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

                        WASHINGTON. D.C. 20460
                         JAN 17
                                                         OFFICE OF
                                                SOLID WASTE AND EMERGENC^ RESPONSE
MEMORANDUM

SUBJECT:  CERCLA Funding of State Oversight of Potentially
          Responsible Parties  (PRPs)

FROM:     J4. "Winston Porter
          Assistant Administrator

TO:       Regional Administrators
          Regions I-X

     This memorandum sets forth the policy and procedure  for
providing funds to States to support certain enforcement-related
activities in addition to State-conducted remedial  investigations
and feasibility studies.  These activities are:  (1) oversight  of
RI/FS and remedial designs prepared by potentially  responsible
parties at State-lead enforcement sites; and (2) management assis-
tance for RI/FS and RD conducted by PRPs at EPA-lead enforcement
sites.

     In response to specific requests for such funding, we have
drafted the attached guidance.  This guidance explains  the conditions
to be met and tasks to be funded for the two activities mentioned
above.  However, State funding for work related  to  Federal facility
sites (management assistance and oversight) will currently not
be allowed.  There are key issues to be resolved in defining EPA
and State roles in remedial work conducted by Federal Agencies
at Federal facility sites.  As we resolve these  issues, funding
guidance may be developed in the future.

     In a related matter, we are currently formulating  additional
guidance for funding States for other types of enforcement activities
as well as those outlined in the attached guidance  (e.g.  oversight
of PRP remedial construction, negotiation and litigation).  When
the specific conditions and tasks and funding levels are  determined,
this guidance will be expanded and issued as a draft addendum  to
the manual State Participation in the Superfund  Remedial  Program.
                               P-3

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     A draft of this guidance was distributed for comment to the
Regions, State associations and Headquarters offices on July 15,
1985.  A summary of the comments and our responses is attached for
your review.

     Due to the current "slowdown" of the CERCLA program, there
is currently no money available in the enforcement budget to fund
these oversight and management assistance activities.  In the
event CERCLA reauthorization occurs and monies are provided in
the budget, there may be funds available later in the fiscal year.
When monies become available, the concurrence of the CERCLA
Enforcement Division Director in the Office of Waste Programs
Enforcement must be obtained and the enforcement Superfund
Comprehensive Accomplishments Plan formally amended.

     Since funding of State enforcement activities is a new
venture for the CERCLA program, Regional enforcement and program
staff should work closely together on its implementation.  I
also encourage close coordination with your Regional Coordinator
in the CERCLA Enforcement Division in OWPE and Hazardous Site
Control Division in OERR.  I would like drafts of new cooperative
agreements or amendments submitted for review to the appropriate
Regional Coordinator in the Compliance Branch in CED.  This
review is necessary to ensure that implementation of these new
funding activities is nationally consistent, and that distribution
of monies available in the future is made in an equitable
manner.

     If you have any questions on the guidance, you may contact
Tony Diecidue, Office of Waste Programs Enforcement (WH-527), U.S.
Environmental Protection Agency, 401 M. Street, S.W., Washington,
D.C., or telephone him at Area Code 202/FTS 382-4841.

Attachments

cc: Directors, Waste Management Divisions, Regions I,IV,V, VII, v/III
    Director, Emergency and Remedial Response Division, Region II
    Director, Hazardous Waste Management Division, Region IIT
    Directors, Air and Waste Management Division, Regions II,VI
    Director, Toxics & Waste Management Division, Region IX
    Director, Hazardous Waste Division, Region X
                              P-4

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                 CERCLA FUNDING OF STATE OVERSIGHT
             OF POTENTIALLY RESPONSIBLE PARTIES (PRPs)
PURPOSE
     The purpose of this guidance is to assist EPA Regional
offices on funding, under a CERCLA cooperative agreement (CA),
of State oversight of Potentially Responsible Parties (PRP)
conducting Remedial Investigations (RI), Feasibility Studies
(PS), and Remedial Designs (RD) at sites on the National
Priorities List (NPL).  The guidance also discusses funding of
States during a Federal enforcement response.  This is interim
final guidance and Regional staff should contact their appropriate
Headquarters counterpart if questions or problems arise when
proceeding to award a CA for PRP oversight.

BACKGROUND

     EPA's Office of General Counsel has concluded that
CERCLA funding may be provided to States to support various
enforcement related activities in addition to State conducted
RI/FS at State-lead enforcement sites.*  The rationale is that
such activities are part of the remedial planning process
(CERCLA, Section 104(b)) and consequently are eligible for
CERCLA funding.  Subsequent to this opinion, several policy
statements have reflected the allowability of such funding.**
Furthermore, several States have indicated their interest in
conducting oversight activities.

     The role of States in oversight of PRP conducted RI/FS
and/or RD depends on whether the State or EPA negotiated the
administrative order.  If the State negotiated the administra-
tive order, then the State has the lead for oversight of the
PRP's work.  If EPA negotiated the administrative order, then
EPA is responsible and generally has the lead for oversight.
However, when EPA has the lead for oversight the State may
receive funding for management assistance and, under certain
circumstances, may undertake a portion of the oversight with
EPA approval.

GUIDANCE

     This guidance is divided into two sections:

     -    State oversight of PRPs; and

          EPA oversight of PRPs.
     *L.A. DeHihns, Authority to Use CERCLA to Provide Enforcement
Funding Assistance to States, July 20, 1984.

     **L.M. Thomas and D.A. Lazarchik, EPA/State Relationship in
Enforcement Actions for Sites on the National Priorities List,
October 2, 1984; G.A. Lucero, Funding of State Enforcement-
Related Activities, January 23, 1985.

                             P-5

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Each section explains the conditions for awarding funds and the
fundable tasks for each situation.  This guidance, however, does
not preclude the Regions from including additional conditions
in the application if warranted.

!•  Funding State Oversight of PRPs - State Enforcement Response

     If a State successfully negotiates to have the PRPs conduct
the RI/FS and/or RD, it will be in the State's interest to oversee
the PRPs1 work.  As a general rule, States should attempt to secure
funds for this oversight in advance from the PRPs as part of the
settlement.  Where this is not possible, EPA may fund the State
for oversight and will seek future CERCLA §107 cost recovery for
those costs.

     A.I  Conditions for Funding under a Cooperative Agreement;
          Oversight of RI/FS

     In order to receive funding from EPA for oversight of a PRP
conducted RI/FS, the State must include the following information
and assurances in their cooperative agreement application:

     1.    The State must issue or obtain an enforceable order,
          decree or equivalent requiring the PRP to prepare a
          RI/FS in accordance with the National Contingency Plan
          (NCP) and applicable EPA guidance.  A copy of the
          order must be included in the cooperative agreement
          application.

     2.    The State's Attorney General must provide a letter
          outlining the State enforcement authorities that will
          be used in the event an enforcement action must take
          place against the PRPs.   (The letter may be used for
          all subsequent oversight funding requests as long as
          no changes in State law have occurred.)

     3.    The State must submit with the CA application a letter
          from the Governor,  Attorney General or designee certifying
          that:

          0 The State believes a good enforcement  case exists
            against the PRPs  {i.e. financially able to undertake
            the remedy or expected cost of the remedy) at the
            onset of the RI/FS.

          0 If a good enforcement  case continues to exist at the
            completion of the RI/FS, the State agrees to pursue
            administrative or civil enforcement action to (1)
            assure performance of  the RD/RA by the PRP or (2)
            collect from the  PRP the funds necessary to conduct
            the RD/RA.

          0 The State will select  a remedy that is consistent with
            the NCP.
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           0 The State attempted  to  secure  funds  for oversight of
            tne RI/FS from  the PRP  but was either unsuccessful or
            lacked authority under  State law.

           If State law directly  gives these authorities to a State
           agency, a letter  to this  effect will be appropriate.*

     4.    The State must agree to submit all final plans, reportsr
           specifications, and/or recommendations to EPA for review
           and concurrence prior  to  issuance or implementation.
           Final PRP documents or plans and PRP change orders that
           substantially change the  scope of work must be submitted
           to EPA prior to issuance  for review to ensure technical
           adequacy and compliance with the terms of the CA.  The
           State must also assure in the CA that  it will not expend
           funds for oversight of the RI field activities until EPA
           has had the opportunity to review and comment on the RI
          work plan and has indicated in writing that this condition
          was satisfied.  EPA will agree to provide their review
          within the timeframes or  schedules established in the
          order.

     5.   The State must prepare and implement a community relations
          plan in accordance with applicable EPA guidance.  The plan
          must include a provision  for public comment on the RI/FS.

     A.2  Conditions for Funding under a Cooperative Agreement:
          Oversight of RD

   In order to receive funding from EPA for oversight of a PRP
conducted RD, the State must include the following information and
assurances in its CA application:

     1.   The State must issue or obtain an enforceable order,
          decree or equivalent requiring the PRP to prepare a RD
          in accordance with applicable EPA guidance.   A copy of
          the order must be included in the CA.

     2.   The State's Attorney General must provide a letter outlining
          the State enforcement authorities that will be used in the
          event an enforcement action must take place against the
          PRPs.  (The letter may be used for all subsequent oversight
          funding requests as long as no changes in State law have
          occured.)

     3.   The State must submit with the CA application its
          documentation similar to EPA's Record of Decision (ROD)
          or Enforcement Decision Document (EDO), outlining the
          information and rationale used to select a remedy
          consistent with the NCP.
     *Since the State cannot recover any CERCLA funds that EPA has
provided for work at the site, the enforcement and cost recovery
provisions in Appendix F of the manual. State Participation in
the Superfund Remedial Program, still apply.

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     4.   The State's Governor, Attorney General or designee must
          certify in the CA application that the State attempted
          to secure funds for oversight of the RD from the PRP but
          was unsuccessful.

     5.   The State must agree to submit all final plans, reports,
          specifications, and/or recommendations to EPA for review
          and concurrence prior to issuance or implementation.
          Final PRP documents or plans and PRP change orders that
          substantially change the scope of work shall be submitted
          to EPA prior to issuance for review to ensure technical
          adequacy and compliance with the terms of the CA.  The
          State may not expend funds for oversight of the RD
          activities until EPA has had the opportunity to review
          and comment on the RD work plan and has indicated in
          writing that this condition was satisfied.  EPA will
          agree to provide their review within the timeframes or
          schedules established in the order.

     6.   The State must prepare and implement a community relations
          plan in accordance with applicable EPA guidance.

     The Regional Administrator will review the rationale used to
select the remedy, the enforceable order and the CA application.
Based on this review, the Regional Administrator may decide to:

          Fund oversight of the RD (all or some of the tasks in
          the application);

          Not fund oversight of the RD if the State/PRP
          negotiated remedy is unacceptable to EPA; or

          Initiate EPA enforcement actions against the PRP.

     In order to avoid delays and problems during EPA's review,
States should work with the EPA Regional Office and keep EPA
informed throughout the remedial planning process, remedy selection
process and negotiations with the PRPs.

     B.I  Fundable Oversight Tasks;  RI/FS

     Currently, EPA does not have experience with funding States
to oversee PRPs conducting remedial response tasks.  In an effort
to provide States and Regions with some guidelines on costs and
allowable tasks, we reviewed the Federal experience with oversight.
We also reviewed typical State costs for certain specific tasks.
Based on these reviews, we have determined that State costs for
oversight generally should range between 8% to 10% of the cost of
the RI/FS.  The rationale is that the PRPs are responsible for
actually managing the work and conducting the RI/FS.  States should
not be duplicating work conducted by the PRPs.  Therefore, in
most situations, funding within this range should be adequate for
oversight.  Since this is a new activity, however, the Regions are
encouraged to review carefully the budgets submitted by States and
to consult with their Headquarters counterpart in OWPE before
awarding CAs for oversight.
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     In preparing and reviewing the proposed budget, it might be
helpful for States and Regions to think of oversight as consisting
of review tasks, community relations, and field related tasks.
States should try to specify in the administrative order the
roles and responsibilities of the PRP as distinguished from the
roles and responsibilities of the State in each of these major
categories.

     Review tasks conducted by the State might include:

          Review preliminary planning documents;

          Review and comment on scope of work and work plans;

          Review and comment on quality assurance project plans
          and site safety plans;

          Review and comment on draft RI reports;

          Review final RI reports;

          Review and discuss FS objectives;

          Review and comment on draft FS;

          Review final FS;

          Review PRP monthly progress reports;

          Organize and participate in technical meetings on  the
          RI/FS with the  PRPs, PRP contractors, and/or EPA.

Since  the tasks listed above are  similar to  those described  under
Management Assistance in  Chapter  IV  (page  IV-6) of  the manual
State  Participation  in the  Superfund Remedial Program, it may  be
helpful  to consult that section  for more  information.

     States must oversee  and manage  the  development  and
implementation  of community relations tasks.  For additional
guidance States should consult Appendix  K,  "Community  Relations
Plan Format and Sample Plan",  of  the manual  State Participation
in  the Superfund Remedial Program and the  document  Community
Relations  in  Superfund; A Handbook,  especially  Chapter 6 which
deals  with community  relations during enforcement actions.

     Community  relations  tasks  listed  in the Appendix  include:

           Conduct discussions  with the  affected  community  in
           the locale  of  the site;

           Prepare community relations plans;
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          Hold public comment period on the RI/FS;

          Brief local and State officials;

          Hold public meetings on technical aspects of the site;

          Prepare fact sheets and press releases and disseminate
          information;

          Prepare summaries of public concerns.

In some instances it may be appropriate, at the sole discretion
of the State, for responsible parties to participate in aspects
of the community relations plan jointly with the State.

     Finally, during oversight, States probably will want to conduct
some tasks directly related to work in the field.

     Field related tasks conducted by the State might include:

          Preparing or assisting the PRP to prepare detailed work
          plans;

          Environmental monitoring (e.g. air, water);

          Analyzing split samples;

          On-site presence*/inspection.

     B.2  Fundable Oversight Tasks: RO

     After reviewing our experience with RDs, we have determined
that State costs for oversight generally should not exceed 4% to
6% of the cost of the RD.  The rationale is that the PRPs are
responsible for managing the work and conducting the RD.   The
State's oversight of PRP conducted RD primarily will involve review
tasks and community relations.  The tasks may include but are not
limited to:

          Participate in technical design briefings for RD initiation;

          Review design scopes of work;

          Technical meetings on the RD with the PRPs, PRP contractors
          and/or EPA;
     *The amount of on-site presence to be funded by EPA during
oversight of a PRP RI should be negotiated with EPA on a case-by-case
basis.  The amount of on-site presence needed varies widely according
to the type and condition of the site, the distance of the site
from the State offices, and other considerations.
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          Prepare fact sheets and notify public on RD activities
          and what the RD is expected to entail;

          Continue prior community relations activities as needed;

          Assist in reviewing preliminary design documents and
          design changes which may affect remedy selection;

          Review and comment on value engineering screening
          submittals;

          Review and comment on quality assurance project plans,
          site safety plans and intermediate design documents;

          Review and comment on plans for operation and maintenance
          developed by PRP;

          Review final RD.

2.   Funding State Management Assistance and Oversight of
     PRPs - Federal Enforcement Response

     If EPA has negotiated the administrative order with the
PRPs, EPA will have the lead for the oversight of PRP activities
and for community relations.  In this situation, States may receive
funding for management assistance.  Management assistance will
essentially involve review tasks and is explained in detail in
Chapter IV, page IV-6, of the EPA manual State Participation in
the Superfund Remedial Program.

     In some cases, the State and EPA Regional Office may agree
that the State as well as EPA or EPA's contractor should have
an oversight role during a Federal enforcement response.  This
means the State would be conducting some community relations
tasks and/or some field related oversight tasks as described in
the oversight section above.  For each task, the CA should clearly
explain the roles and responsibilities of the State as distinguished
from the roles and responsibilities of EPA or EPA's contractor.
It should be made clear, however, that the State cannot act as
EPA's agent to the PRPs.  Where EPA has the lead for oversight,
EPA encourages the State to conduct oversight tasks only if the
State has the inhouse capability to do the work.  Generally/ EPA
will fund the State to hire a contractor for these tasks only if.
the State can show that it is cost-effective to do so.  Furthermore,
EPA will not pay States for conducting tasks that duplicate EPA's
oversight efforts.
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   SUMMARY OF COMMENTS AND RESPONSES ON THE GUIDANCE

           CERCLA FUNDING OF STATE OVERSIGHT
       OF POTENTIALLY RESPONSIBLE PARTIES (PRPs)

0 One commentor asked for flexibility in decision-making on
  whether to have further PRP involvement during RD/RA or
  switch to a Fund-financed RD/RA.  In response, we have
  added appropriate language to the guidance.

0 One commentor suggested that enforcement action referenced
  in the background section is not limited to administrative
  orders.  We agree that States may want to use judicial
  action to compel PRPs to perform the RI/FS.  We are currently
  formulating guidance for these activities and will expand
  the background section when this additional guidance is
  issued.

0 One commentor recommended that States not select a remedy,
  but provide the proposed remedy to EPA for review and
  approval.  Neither the National Contingency Plan or State
  Participation Manual require that EPA select the remedy if
  EPA funds the RI/FS.  This is only a condition for funding
  the RA.  However, we agree that more specific language is
  needed to ensure that conditions of the agreement are met.
  EPA involvement in reviewing key RI/FS work products is
  needed to (1) decide whether to be co-signers to administra-
  tive orders, consent decrees or other State enforcement
  actions and (2) be in the most informed position possible
  when determining whether to delist the site from the NPL.
  Therefore, the need to be informed and involved is not
  just a condition for funding but to ensure consistent and
  effective remedies at NPL sites on a national basis.  In
  light of this, we have revised language in the guidance.

0 One commentor recommended more stringent assurances
  that the State make any changes requested by EPA to the
  RI work plan and may have their funding withdrawn if EPA
  is not satisfied with the plan or the oversight of its
  implementation.  We feel the current language in the
  guidance is sufficient to ensure EPA's review of the work
  plan and that funds will not be expended for oversight of
  field activities until this condition is satisfied.

0 one commentor recommended that when requesting RD oversight
  funds, a State should submit to EPA a remedy consistent with
  the NCP and provide support documentation.  In response, we
  have made the appropriate changes to the guidance.
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0 Two commentors suggested that it may be difficult to
  estimate the cost of the RI/FS or RD since the PRP may
  not necessarily provide this information to the State.
  Therefore, it was recommended that a fixed amount be
  established.  We believe there is enough experience
  available for the State to come up with a reasonable
  estimate, and we should not establish a fixed amount.
  The Region should also use their experience and work
  with the State in developing proper funding amounts.

0 One commentor requested a more specific reference to the
  enforcement chapter of the Community Relations Handbook.
  In response, we have made this reference in the guidance.

0 One commentor recommended that the State be required to
  submit a Site Management Plan (SMP) and EPA/State Enforcement
  Agreement (ESEA) with the cooperative agreement (CA)
  application.  We feel this requirement goes beyond the
  scope of the funding guidance.  The role of ESEAs (i.e.
  in what situations should they be prepared and whether
  they should be prepared if there is a CA covering the
  same activities) has yet to be worked out within the
  CERCLA enforcement program.  Furthermore, schedules and
  commitments outlined in SMPs and ESEAs may duplicate
  those outlined in cooperative agreements and RI/FS work
  plans.

0 One commentor asked how CAs are to be interrelated with
  ESEAs.  CAs are mechanisms for passing monies to a State
  to conduct certain allowable activities at NPL sites.
  ESEAs are documents outlining the roles and responsi-
  bilities between the two parties during an enforcement
  action at NPL sites.  ESEAs are not necessarily required
  if a CA for a site has been awarded.  The Office of Waste
  Programs Enforcement is currently reviewing the applicability
  of ESEAs and will be drafting guidance on this matter.

0 One commentor requested that the State be allowed to
  conduct an RI/FS "or equivalent," thereby making the
  funding guidance consistent with the October 2, 1984
  policy on "EPA/State Relationship in Enforcement Actions
  for Sites on the NPL." We feel that since Federal funding
  is being provided, the State should be consistent with
  what the Federal government would perform in lieu of the
  State.  Therefore, an RI/FS should be prepared when CERCLA
  funds are provided to a State.
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0 One commentor asked why the State should commit to
  pursuing enforcement actions, while the October 2, 1984
  policy requires that the State only "pursue and ensure
  implementation of a remedy."  Again, we feel that this
  requirement is consistent with what EPA would do under
  Federal-lead enforcement in the event PRPs decided not
  to perform the RD/RA.  The commitment to pursue further
  enforcement action is an important factor in whether to
  fund State oversight of PRPs.

0 One commentor asked whether a State could use the
  CERCLA Technical Enforcement Support (TES) contracts.
  We will not allow use of the TES contracts for any
  tasks funded under the CA.

c One commentor asked which Regional staff, enforcement
  or remedial, has the lead for monitoring CAs for State
  oversight of PRPs.  This responsibility lies with the
  Regional enforcement staff.

0 Two commentors asked how EPA would quality assure or
  assess the State's implementation of PRP oversight
  under CAs.  This issue is being addressed as part of
  the CERCLA enforcement program's development of a PRP
  oversight manual.

0 One commentor recommended that State oversight of RI/FS
  be funded at a higher percentage (10 to 20 percent)
  than allowed in the guidance, while also providing
  flexibility to allow even more on a site-by-site basis.
  We feel that oversight costs will not be this high
  except in rare instances.  Also, a State's oversight
  may not be as costly as for the Federal government and
  we may not have sufficient funds to even entertain this
  level of funding.  Therefore, we will keep the percentage
  at 8 to 10 percent.

0 Two commentors supported early resolution of the Federal
  facilities issue, so that funding for Federal facilities
  oversight could be provided to the States.  One of the
  commentors also recommended that a pilot project be
  awarded, in order to gain useful information for future
  guidance on the issue.  We are sensitive to the commentors'
  concerns that the Federal facilities issue be resolved
  in a timely manner.  However, until that time it is  not
  appropriate to fund States for this activity.
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0 One commentor recommended that EPA give advance notice
  of this guidance to the States,  and be flexible on whether
  the State must meet all the conditions outlined in the
  guidance for ongoing site actions.  We feel that the only
  condition suitable for waiver is the requirement that a
  State certify it attempted to secure oversight funds from
  the PRPs.  This requirement will be waived for ongoing
  projects in which settlements have already been reached
  with PRPs prior to the date of this interim final guidance.
  However, the other principles and conditions outlined in
  the guidance still apply.

0 One commentor suggested that the requirement for public
  comment on consent orders is not mandatory and should be
  deleted from the guidance.  Please refer to OWPE's August
  28, 1985 memorandum entitled "Community Relations Activities
  at Superfund Enforcement Sites," which outlines when public
  comment on administrative orders is appropriate.

0 One commentor suggested that the level of detail required
  for documenting the information and rationale used for
  selecting a remedy would pose an administrative burden on
  the State.  We feel this information is essential to
  reviewing and determining whether to fund a State for
  oversight of the RD.  We encourage the States to establish
  a consistent approach to developing adequate documentation.
  This will enable EPA to provide timely review and approval
  of CAs for State oversight of RD.

0 Two commentors recommended that an official other than the
  Governor or Attorney General be allowed to make the required
  certifications outlined in the guidance,  in response, we
  have added language to the guidance.

0 One commentor recommended that EPA agree to provide review
  and comment on the RI work plan in the timeframes established
  in the administrative order.  In response, we have added
  language to the guidance.

0 One commentor suggested that the State should be allowed
  the lead for oversight after an EPA-lead settlement has
  been reached with PRPs.  Section (2) of the guidance does
  allow an oversight role for States at EPA-lead enforcement
  sites.  The proper role should be determined by the Region
  and State on a site-by-site basis.  However, the State
  cannot act as EPA's agent to the PRPs and will not be
  given the entire lead for the site.

0 Two commentors asked whether funds for oversight of PRP
  construction will be provided to States.  We are currently
  formulating guidance on funding this activity, and will
  issue an addendum to this guidance once the conditions
  and tasks and funding levels are determined.
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0 One commentor encouraged better coordination between the
  State's environmental office and Attorney General's office.
  The commentor recommended that the State Attorney General
  outline in writing what legal authorities are available to
  the State if enforcement action against the PRPs is necessary
  We support and encourage this coordination, and have added
  a new condition to acconodate the recommendation.
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