SOLID AND HAZARDOUS WASTE PROGRAM

HAZARDOUS WASTE FIELD EMPLOYEES HANDBOOK

CHAPTER 8

1.0 INTRODUCTION

The primary purpose of this chapter is to provide procedural and

technical guidance for conducting inspections of hazardous waste

handlers regulated by Chapter 173-303 WAC and any necessary enforcement follow-up. Section 2.1 of Chapter 8 contains information on the

different types of inspections hazardous waste personnel conduct;

Section 2.2 discusses inspection frequency; Section 2.3- contains

inspection procedure information; Section 2.4 gives direction for

preparing inspection reports; and Section 2.5, Enforcement Process,

describes enforcement procedures and enforcement action format.

2.0 INSPECTIONS

Ecology and the EPA adhere to a Memorandum of Agreement (MOA) which

characterizes the working relationship between the two agencies.

Specific details of this relationship are further specified in the

annual State/EPA Agreement (SEA). The SEA defines the number of inspections. closures. permitting work. and regulatory and policy enhancements

that Ecology will complete during the upcoming year. Additionally,

Ecology develops a state annual plan which not only includes those

elements of the SEA, but additional "state only" objectives. Since the

above documents establish the framework for all dangerous waste management activities undertaken by Ecology during a given year, they should

be reviewed by all inspectors on an annual basis.

There are several types of inspections that hazardous waste staff may

conduct. Many of these have been defined by EPA and are required at the

state level to maintain authorization.- Generally, -numbers and types of

facility inspections are specified in the SEA and state annual plan.

The major types of inspections conducted by Ecology are as follows:

2.1 Types of Inspection

2.1.1 Comprehensive Evaluation Inspection (CEl)

A CEl is an evaluation of the handler's (generator, transporter, or

treatment, storage, or disposal facility) compliance with Chapter 173-

303 WAC and any permit requirements. It is intended to evaluate the

handler's compliance with all applicable requirements.

The inspection includes a characterization of the facility's activities

identifying types of hazardous and solid wastes on site and units which

generate, treat, store, or dispose of hazardous and/or solid wastes.

The inspection includes an examination of records and other documents

required by the rules. This should include manifests, waste analysis

plans. groundwater sampling and analysis plans, well system sampling

data where applicable, assessment monitoring plans where applicable,

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training plans, contingency plans, closure/post-closure plans, and

compliance with land disposal restriction requirements. Contingency and

training plans should be reviewed for adequacy. Closure/post-closure

plans should be reviewed for adequacy including cost estimates. This is

particularly important when closure of the facility is imminent. Other

documents should be reviewed ·to assure at least the significant

requirements of the regulations are met.

All applicable checklists, must be filled out for each inspection. For

example, if a facility is a generator and a TSD, all activities at the

handler must be evaluated and the checklists for generator and TSD must

be completed. A CEI can result in identification'of the need for more

ccmprehenstve inspections, sampling~ or the n~ed to review, a docUment in

gre'ater detaiL " ;'

Comprehensive evaluation inspections conducted at final status facilities differ :'from .inspections at 'int~rim' st.it~s facUities in that the , ". 1·. '," , " : inspection review is evaluated against the written permit requirements

r ache r i chan the state dangerous waste r egula t Lcns , It, is incumbent upon

the inspector to carefully review the permit requirement before undertaking a final status facility inspection.

Table 2.1

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TSD COMPREHENSIVE EVALUATION INSPECTION (CEI)

Pre1nspection Activities .",

File and permit: review', coordination, hazard

'identification;'equipment assembly, and travel 1",. .

Inspection Activities' ",'

Facility document/plan review

Facility walk~through \ . ~.'

Post-inspect~on Activities

Complete checklist/report

Develop compliance recommendation

Lab analysis

Compliance assistance to facility,

CEl Total (TSD): 108 hours

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Table 2.2

GENERATOR (WITH LAND BAN) COMPREHENSIVE EVALUATION INSPECTION (CEI)

Pre inspection Activities

File review, coordination, hazard identification,

equipment assembly, and travel ,

Inspection Activities

Facility document/plan review

Facility walk-through

Postinspection Activities

Complete checklist/report

Develop compliance recommendation

Lab analysis

Compliance assistance to facility

CEI Generator Total: 60 hours

2.1.2 Comprehensive Groundwater Monitoring Evaluation (CME)

A,CKE is a detailed evaluation of the adequacy of the design and

operation of a facility's groundwater monitoring system. When a CME is

conducted at a facility, a CEI should also be conducted during the same

fiscal year.

Evaluation of the groundwater monitoring system design should be

conducted by a hydrogeologist'or a' professionalwithcomparabte experience and should include the review of the owner/operator characterization of the hydrogeology beneath hazardous and solid waste management

units (SYMUs); monitoring well placement/depth/spacing; and well design

and construction. It is essential that the CME ensure that the owner/-

operator has designed an adequate groundwater monitoring system. In

addition, an integral part of' the CME is the rev'iew of the operation of

the groundwater system through an evaluation of the owner/operator's

sampling and analysis plan and implementation.

CMEs should be scheduled, when possible, to coincide with owner/operator

sampling events to permit the field evaluation of'sampling techniques.

Inspectors should collect splits or conduct independent state sampling

(page 15 has a discussion of safety considerations when sampling) as a

random check of groundwater qualitY data and at any wells which have

indicated releases to support enforcement for corrective action. A

comparison of EPA/state and owner/operator analytical results can be

used to assess laboratory accuracy and establish the reliability of

owner/operator submitted data.

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For interim status facilities, the CME should evaluate whether a

facility operating under detection monitoring should be operating under

assessment monit~ring. For final status facilities, the CME should

evaluate whether detection monitoring~ compliance monitoring, or corrective action monitoring is the appropriate approach. If determined

necessary, the inspector should develop the scope of a follow-up case

development investigation which sh~uld include additional sampling.

CMEs at assessment monitoring facilities include, in addition to the

aforementioned evaluations, a detailed examination of the owner/operator's assessment monitoring plan and field implementation of the plan.

'Table 2.3'

COMPREHENSIVE GROUNDWATER MONITORING' EVALUATION (CME)

Preinspection Activities'

File review, coordination,

hazard identification,

equipment assemb~y, "and travel

Inspection Activities

Inspect monitoring wells

Evaluate sampling program

Collect samples .

Postinspection Activities

Evaluate data results

Final evaluation and report

Lab' anaiysis ' , "

CME Total: 220 hours

, ,

2;1.3 Operating and Maintenance Inspection (04K)

An O&M. inspection is anev~iuation of the ade~~cy,:of a facility's

implementation of their groundwater mon:it~ring plan 'and should be

conducted when 'no substantial de'ficienc'ies were 'noted in,a previous CME

or no substantial changes ~hfch would affect th~,hydrogeology have

occurred since the last CKE. ' This evaIuacLcn should 'be conducted by a

hydrogeologist and includes a review of th~ sampling-and analysis plan

and its operation. The inspector should observe the facility during a

sampling event in order to evaluate their sampling technique. No split

samples are required by EPA, however, they are recommended for a,check

on ,the facility's analytical results. An evaluation of the condition of

the monitoring wells is also part of this inspection. An O&K inspection

can result in the identification of need for a'more comprehensive

inspection (CME).

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Table 2.4

OPERATING AND MAINTENANCE INSPECTION. (O&M)

P~einspection Activities

File review, coordination, hazard identification,

equipment assembly, and travel

Inspection Activities· .'

Inspect monitoring wells

Evaluate sampling program

Review sampling p~ocedures

Postinspection Activities

Evaluate data results and prepare report

Compliance Assistance to Facility

O&M Total: 200 hours

2.1.4 State-P~io~ity Inspection

A state-priority inspection is a review of a handler's compliance with

Chapter 173-303 WAC. The inspection is very similar to a CEI and

includes a preinspection file review, a facility/generator walk-through

to characterize types of hazardous and solid waste on-site and units

which generate, treat, store, or disposal of hazardous and/or solid

waste, and an on-site examination of records and documents as specified

in the CEI definition. A state only inspection differs from a CEI in

that (1) contingency, training,. and .closura,. post-closure plans are

reviewed only for ~resence or absence, and (2) the inspection is documented only with a report; a completed checklist is not necessary. The

inspector has the option of conducting a more detailed review of facility plans if time is available. Comprehensive evaluation inspections~'

O&Ms, and CMEs are generally conducted to fulfill EPA requirements and

maintain RCRA authorization. State-priority inspections allow the state

to focus on more specific problem industries in Washington.

2.1.5 State Drop-In Inspection

The state drop-in inspection is also conducted to review a handlers

compliance with Chapter 173-303 WAC. Like the state-priority inspection, the drop-in inspection is not an EPA priority inspection. Drop-in

inspections are typically initiated by a citizen complaint or as a

follow-up to a previous inspection and can encompass a broad range of

investigative procedures. D~op-in inspections do not generally require

full length inspection reports .

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2.1.6 Joint and Qyersiiht Inspections

As part of the SEA requirements, the EPA and Ecology will coordinate on

joint or oversight inspections. Joint inspections can be conducted at

Ecology or EPA request to facilitate information gathering or enforcement effectiveness. The EPA conducts oversight inspections for the

purpose of assessing the quality of state conducted inspections: The

oversight inclUdes both procedural and technical aspects of the on-site

inspection and thorough review of state enforcement recommendations.

2.2 Inspection. Frequency

Frequency-of CHE, CEl, and O&M facility and generator inspections are

mandated by the EPA. These requirements are identified in the SEA as

state commitments. The type of facilities, kind of inspection, and

frequency in which they occur is outlined in Table·-7.1.

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Table 2.5 ,EPA Inspection Requirements

(Per 1990 RCBA Implementation Plan)

EacH! ty

Disposal

Disposal (Active)

Disposal (in Closure

Proceedings)

Disposal .

Treatment

Type of Inspection

CME

CEI

CEt

OOM

CEl

Frequency

Once (unless substantial

facility modifications)

Once every year

Once every two years

Once every three years

after CME

Once every two years

(50% of universe)

•i

Storage CEI

TSD Receiving CERCLA Waste CEl

Generator CEl

State Priority Generator CEl

TS Facilities Regulated CEl

by State Statute Only

Federal IS facilities CEl

State or Local CEl

Government Facilities

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Once every two years

(50% of universe)

Once every six months

Per annual SEAjRlP

As resources permit

Once every two years

(recommended)

Once every year (by

Ecology or EPA)

Once every year (by

Ecology or EPA)
2.3 Inspection Procedure.

,2.3.1 Preinspection Activities

There are seven major pre inspection activities that the inspector should

undertake prior to' the actual inspection:'

•

•

•

•

•

•

Define the scope of the inspection.

Review files.

Discuss the facility history/operation with knowledgeable staff.

Contact the facility, if necessary.

Determine health and safety requirements and prepare a safety plan.

Prepare an inspection outline (as necessary).

Prepare equipm~nt.

Defining the Scope of the Inspection

. .

The critical' initial step in planning an inspection is to define the

scope 9f ~he inspection. The scope will depend largely on the purpose

and objectives of the inspection. For example, the scope of a routine

compliance evaiuation inspection will be different from the scope of an

insp~ct.ion conducted to assess facility ,compliance with permit deadlines. Th~refore, the inspector must first determine the purpose and

objectives of t~e inspection in order to.define the scope. Typically,

inspections 'may be performed for a number of purposes, including:

• Ro~tine periodic,assessment of compliance with Chapter 173-303 WAC.

• Review of, facility activities or status with respect to an' adrilinistered enforcement action.

• Review. of facility compliance with deadlines established in the

facility's RCRA permit.

• Response to. information received concerning alleged violations at

the f ac Ll Ltry ,

Inspections for some of these purposes will be broad in scope. For

example, routine compliance inspections or inspections conducted in

response to complaints will generally be comprehensive in scope, and

involve a detailed evaluation of all RCRA-related activities at the

facility.

File Review

Facility files are perhaps the best source of information for new

inspectors. They can, if they are complete, provide a detailed picture

of the facilities industrial processes, waste handling procedures, and

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environmental compliance history. If available, the following specific

items should be reviewed:

RCRA HSWA Permits - types of waste managed, design of unit, special

conditions.

State Waste Discharge Permit/NPDES Permit - sewers, waste water

process, discharge limits, special waste handling'procedures.

• Solid Waste Permit - types of waste managed, design of units,

special conditions.

• Past Inspections· inspection reports; hazardous, solid, water, and

air. Documented past violations, complaints, spills, etc.

• Compliance History - identify all regulatory orders and penalties

issued pursuant to all environmental laws. Includes all county,

state, and federal agencies.

• Compare dangerous waste annual reports with facility processes,

Part A application, notification of dangerous waste facilities

(Form 2), historic waste amounts, etc.

• Contingency plans, training plans, closure/post closure plans,

financial assurance instruments, health and safety plans, etc.

Staff Discussions

Discussions with Ecology staff who have been to the facility can provide

information not necessarily found in written records. Staff familiarity

with the facility, its personnel, an~ special environmental investigations all need to be determined.

After staff discussions and file review, the inspector should determine

if local city or county officials have any special concerns regarding

the facility. The inspector's supervisor should be able to provide the

local contact's name and telephone number.

"

Contacting the Facility

Inspections are conducted to determine facility (or generator) compliance with state dangerous waste regulations. As such, unannounced

inspections will generally provide the most accurate information on

compliance status and are the preferred approach in the Solid and

Hazardous Waste program.

Long inspections of complex facilities may require a substantial amount

of facility workers' time. If the inspection cannot-be completed in a

day, it may be desirable to schedule a return date with the facility

representative to ensure that facility staff are ,available.

For inspections where groundwater sampling will be conducted (CME and

O&M), the inspector may elect to contact the facility in advance of the

inspection to coordinate sampling.

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It is not appropriate to notify a facility suspected of criminal illegal

dumping or other criminal violations prior to an inspection, because

notification would provide the facility an opport~nity to cover-up the

illegal activity. Generally, it will not be appropriate, to notify

facilities in advance of inspections performed where violations are

known or suspected to exist. where the purpose of the inspection is to

support a specific enforcement action, arid/or where a ·cover-up" is

anticipated.

Inspectors should consult with their supervisors 'or attorneys if they

have questions concerning advisability of notifying a facility of'an

inspection. Methods used to notify facilities vary with inspection

purpose, and include:

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An advance phone call to .th~, facility to notify the facility of the

inspection date and make appointmen~s to see particular personnel.

An annual notification letter which establishes the authority for

inspections without spe~ifying an inspection date.

A specific inspection letter sent out a 'month before 'the inspection

informing the facility that at inspection will be conducted within

a month.

Determining Health and Safety' Requirements

Although routine inspections ge~erally do not involve activities in

which inspe'c tors must physically contact hazardous was'tes, there is

always the potential for inspectors to be exposed to hazardous wastes or

substances during the course of an inspection. Therefore, in planning

the inspection, inspe~t~rs should:

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•

•

•

•

•

•

•

Det~rmine the nature of the chemical hazards that may be encountered during the Inspec tLon (based on the types of materials

handled on-site, as identif~ed in'the fire review).

Complete boilerplate site health and safety,sheet, . .... ' . ' ,. _... -" . : , . ".

. ~.

Obtain and becomefamilia,r with all applicable safety guidance and

practices.

Identify and obtain proper safety equipment.

Become familiar with the' proper use of safety equipment (if not

already familiar with its use), check equipment for proper function, and conduct necessary 'maintenance on' the equipment "(if

appropriate and within the technical abilities of the inspector).

Determine any facility-specific safety requirements by contacting

the facility (only in cases where the faci~ity is being notified of

the inspection) or by review of previous inspection files.

Have emergency phone numbers available.

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In some·cases, the inspector will have limited information on the

facility. or may be inspecting an uncontrolled site. The inspector

should be prepared to encounter the worst conditions in such cases.

Inspectors should never proceed with inspections involving site conditions for which they are not prepared and do not have the proper safety

equipment. The Solid and Hazardous Waste Program Safety Plan (1990)

provides guidance for use of safety equipment such as respirators and

air monitoring equipment. At present, Solid and Hazardous Waste Program

policy does not allow inspectors to enter an environment where level B

protection is required.

Preparing an Inspection Outline

Based on the scope of the inspection, the file and staff review, and the

health and safety concerns, the inspector should prepare an inspection

outline. The outline will list the operations the inspector intends to

inspect and the tentative order in which the inspection will proceed.

In order to develop an effective outline, the inspector will need to

have accurately assessed the facility processes and potential hazards.

The outline will vary in complexity depending on the type of facility

being inspected.

Equipment Preparation

During an inspection the inspector should use or have available standard

personal equipment issued by Ecology. Items that should be. worn during

all inspections include hard hat " safety glasses, and steel toe boots .

At other times different gear may be required depending upon the circumstance. Some of these items may include rain gear, neoprene boots

(steel toed), hip boots, gloves, respirator, goggles, ear plugs, and

ELSA (emergency life support apparatus).

A basic sampling kit should be assembled by the inspector. This kit

should include pH paper, fluorescence dye tablets, bottles,labels,

collectors guide, cooler, ·write-in-rainbook,' indelible pens, pencils,

etc. These items may be modified, as appropriate, when conducting

scheduled waste sampling or when ground water samples are taken.

The inspector should carry a copy of the current set of hazardous waste

regulations on all inspections. Facility/generator representatives may

request an updated copy. The inspection checklist should also be

carried, but completing it during the inspection will probably unduly

slow down the inspection. This checklist should be completed as much as

possible prior to the inspection. Reference to the checklist immediately after the inspection for summary purposes is suggested,

2.3.2 On-Site Procedures

During the on-site inspection, Ecology personnel must always be polite,

be objective, and act in a professional manner. The inspection should

first begin with an introduction and a statement of purpose. Ecology ID

should be presented at this time. Typically, this is done in the facility contact's office or in a meeting room. An explanation of what the

inspection will consist of, Departmental procedures, and 'any regulatory

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requirements that have recently changed should be discussed, This is a

good opportunity to review facility maps and get clarification on any

questions about facility processes or products. The inspec~or should

also requesi~permission to take photographs at this ti~e, bearing in

mind that Ecology staff have authority to take photographs germane to

the inspection.

Holding the opening discussion immediately after receiving, access to the

facility may not be appropriate in all cases. Depending,upon the

objective of the inspection, the inspector may want to see particular

operations or locations in the faci'Uty prior to t~e opening discussion.

For example. in an unanno~nced inspection of a facility with a susp~cted

violation, the inspector may want to go directly to the site of the

suspected violation in order to observe the are~ before the owner/operator can stop, conceal. or otherwise obscure the noncomplying operation

or condition.

It is important that during th~ Qpening discussion. if one is held, or

other initial diScussion with the owner/operator (e.g. ,~hi1e walking to

the location ofa suspected violation), the inspector establish control

of the' inspection in a firm, .p'rofesslonal manner. T.Jhile' Inspeccoxs

should, if possible, avoid ~a~sing und~e disruptions of !acilityoperations. the inspector should remember that he or she is in charge of the

inspection.

During the on-site visit the inspector will build a working relationship

with the facility representative',This x:elationship must be built on a

'foundation of forthrightness on 'Ecology's part .regardl.ess of the

,facilities position orrepre~entative'sdemeanor<

Th~ inspector maybe asked, t~ Sign-'a si'tea~ce~si.and Uabii"ity wai-yer

prior 'to,beginning the inspection:' "On th'e advice of our Attor:ney

General (December 5, 1985), th~ fnspector' 'sh,ould refuse to sign this

type of document. By signing such a'docUment; it indicates that Ecology

assumes the liability for the inspector's safety, which isincumbent,on

the facility rather tha~ E~ology~ ,Furthermore, the inspector ,does not

have the 'requisite authority to enter into, su~h~n agreement with the

faciUty. To date ,entry has not b'een' denie~ an Lnspec tor 'on,tl:tis !'

basis,' T.Jhen and if it does occur,theprocedure would include notifying

the AG' s office and obt.iinin.g' a search warrant to 'gain access to conduct

the inspection. There is a discussion on procedures to.follow for

denied access and use of a warrant t~ gain access in the'1988 EPA RCRA

Inspectiori ,Manual (pages 4-5 through"4-8).,

In general, the visual Lnspect.Lcn of the facility should proceed in

accordance with the inspection~plan or strategy developed by the inspector during inspection planning. The inspector may, however, determine

that it is appropriate to modify the plan based upon information

obtained during the record review of other factors, such as the availability of specific personnel for interviewing or the scheduled operations of waste management units to be inspected.

When planning and performing the visual inspection, it is generally

desirable for the inspection to proceed in a way which allows the

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inspector to evaluate and understand the waste flow within the facility

and to determine the compliance status of each segment of the facility's

waste management system. For example, in a plant which generates

hazardous waste, stores waste for off-site disposal, and treats some

waste on-site, the inspection could proceed as follows, in brief:

Inspect points of waste generation and accumulation. Determine if

the owner/operator has identified all hazardous wastes based on

generating operations, and determine if accumulation points meet

satellite storage area requirements, if applicable.

This type of flow enables the inspector to understand the movement and

control of wastes within the facility, which is important in order to

identify:

•

•

•

•

•

Evaluate in-plant waste transport from generation and accumulation

points to storage and treatment units. Determine if there is

potential for mislabeling, misplacing, or mishandling wastes, and

if wastes are adequately tracked ,to enable proper identification at

storage and treatment units.

Evaluate storage and treatment units for compliance with applicable

standards. Determine if wastes in units correspond to those whose

points of generation have been inspected, and identify where any

other wastes in the units come from. Determine if any hazardous

wastes are generated in the unit (e.g., treatment sludge) and

evaluate the management of such wastes for compliance.

Hazardous wastes which may not currently be considered hazardous by

the owner/operator.

Non-complying procedures or management practices which are part of

the facility's routine operations.

Steps in the management process during which wastes may be mishandled or misidentified, and in which there are opportunities for

spills or releases.

Unusual situations which may be encountered during the inspectionwhich vary from the facility's stated normal operating procedures

and which may indicate potential violations.

t.

During the inspection, photographs of all violations identified should

be taken. On the inspection log identify location, direction of photo

(north, south, etc.), what is being photographed, and preliminary

environmental and regulatory analysis. Care should be taken to note

factual information only, not impressions.

The following list was supplied by our inspectors suggesting items to

look for during the inspection in addition to items listed on checklists:

• Integrity of containment (cracks in concrete, etc.).

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• Drains.

• Inspection dates on fire extinguishers.

• Stains on ground.

• Stressed vegetation.

• Proximity of ignitable wastes to power lines, property boundaries,

etc.

• Safety equipment storage areas.

• Transformers.

• Correction of past violations. ,. ... ," - . ,--

Throughout the inspection, the inspector has the riSht to ask any

question and go anyplace on the plant site that is ,germane to the

inspection. All areas should b~ inipected. espec~ally if an area is

being avoided. . -

Questions should always be asked in a polite and. 'if necessary. insistent manner. DUring discussions;with facility personnel, the inspector

should focusoh the 'facts. Special attention should be taken to avoid

conversations into areas of speculation" i.e .•. the. extent ,of a newly

discovered problem or possible enforcement scenarios:' '

There will be many times when questions ar~ asked directly by the

facility that do not have answers that are readily apparent. There is

nothing- wron'g with stating; "I'do not know the answer 't6, the question."

Simply tell the individual(s) that you will get, back with theinformation as soon as you can. This is much better than being in erro,r or

providing them with miSleading lnformation: It'is important to provide

the follow-up information as soon' as' po'ssIbIe , If' the facilitY representative cannot answer a question make a note of it and request the

information in' a 'follow-up letter.-- ,- - .', . . . .

Following the on-site walk through of the facility an exit meeting

should take place. It is at this time that the inspector thanks the

facility for their time and informs them' of his/he~ preliminary findings. These findings do 'notrteed to be all irtclusive nor shoul~ they

include possible enforcement' actions. If any imm~diate corrective

action is required for any observed violation. it should ,be reviewed at

this time. If this is the case, and;a critical or serious violation is

involved, it sho~ld be documented by a field compliance letter

(page 22). c

2.3.3 Determining the Need for'Sampling and Sampling Procedures

Sampling is conducted (1) routinely during a CME or O&M inspection to

characterize groundwater beneath a facility, or (2) to verify the

identity of a waste or to identify potential releases of hazardous

wastes or constituents to the environment. Groundwater sampling

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generally does not put the inspector at risk of exposure to hazardous

substances; however, the Solid and Hazardous Waste Program Safety Plan

should be consulted if the inspector has any doubts.

Aside from groundwater sampling during CME or O&M inspections, there are

many possible conditions or activities which may lead the inspector to

determine that sampling may be advisable. Examples of some of these

conditions include situations in which:

• The owner/operator is handling a potentially hazardous waste as a

non-hazardous waste.

• In-plant waste handling practices indicate that mislaheling/misidentification of waste is likely to occur, or that wastes may vary

significantly in characteristic over time and be mismanaged as a

result.

• There is visible or other observable evidence of possible releases

of hazardous wastes from waste management units, satellite storage

areas, waste generating areas, etc.

• Wastes may be managed improperly, i.e., in an inappropriate treatment or disposal unit.

When the inspector conducts investigative sampling because of question-.

able waste management practices, the sample will be used to identify

noncompliance and support case development and should be handled with

appropriate care. The inspector should have enough knowledge of

facility processes and potential wastes to specify a narrow range of

parameters to be analyzed, thus saving the laboratory the time and

expense of a multiparameter analy~is. Chapter 4 of the Hazardous Waste

Field Employees Handbook discusses use of the Ecology lab and sample

handling.

Generally, the facility representative will collect the sample under the

direction of the inspector. The inspector may request a sample split

from the. facility representative to verify the analytical results. The·

facility representative must collect all samples from drums or other

containers. Facility personnel should take all samples following existing sampling and analysis protocols in the facility permit, and any

changes to protocols requested by the inspector. For unpermitted

facilities, the inspector will establish the sampling and analysis plan.

The Solid and Hazardous Waste Program Interim Safety Plan outlines some

situations where SHW staff are permitted to conduct sampling because

exposure to hazardous substances is minimal.

As noted in the health and safety requirement section, current Solid and

Hazardous Waste Program safety policy does not allow inspectors to

knowingly enter an environment where level B protection is required.

However, at this writing, the agency does not have a delineated

procedure to determine that level B conditions are present in a

particular situation.

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If the inspector chooses not to have samples taken during an inspection,

potentially non~omplying conditions or criminal activity should be

identified with notes and photographs for possible future case develop~

ment evaluations.

2.4 Inspection Report

The inspection report is the official document describing the findings

of the on-site inspection and record review. The report must be written

in a clear logical manner, be factual, and comprehensive and should

never contain speculation or enforcement recommendations. When enforcement is considered, a separate addendum or document containing recommendations is prepared for departmental use. The documents are separated

because the inspection report is a public document and may be requested

for review. If enforcement is warranted as a result of the inspection,

the inspection report will be used by the Department or the facility in

the course.iofv.a .he arLng, "Therefore"all, inspection. findings must be

accurate and defensible by the agency.

The inspection report is completed as soon as possible after the inspection. Many times documents or other information will ,be submitted by

the facility after the inspection. Information, such as sampling

results, may be added to the inspection aS,an addendum at a later date.

In addition, review of these documents sometimes takes a considerable

amount of time, e.g" closure, waste analysis, or ground water monitoring plans. In these cases, the report should be drafted with the

available information immediately after the inspection and finalized at

the conclusion of the additional review.

The timeliness of~he written report is crucial. particularly in those

instances where violations. were documented. It does not benefit the

agency. the facility. or the public if the Department does not convey

the results of an inspection to the facility in a tJmely manner.

2.4.1 Inspection Report Content and Format

The inspection report contains a narrative description of the activities

conducted during" the.' inspection',' the-results -of the-"inspection', including the violations .noted and the appropriate c LnatiLon i vand acomptiance

checklist. Tqis is a neutral document which ide~tifies,violations

observed. The report must be objective; it should contain only relev~~t

facts. I Additional documents may be attached if they apply to the

inspection under consid~ration. The. narrative description is designed

to both augment and highlight the information found in the inspection

checklist.

Enforcement actions are not discussed in the inspection report. The

inspection report is viewed as a "stand-alone" document which provides a

basis for enforcement action. It gives the Department a view of conditions at the entity at the time of the inspection. A letter listing the

violations discovered is sent at the conclusion of the inspection.

Handlers use inspections, in part, to gauge their ability to manage

hazardous waste in an environmentally safe manner.

3-9-16
Although each inspector has his/her own style of writing, and each

regional office has their own procedures, the inspection report format.

and basic content should be consistent statewide. The narrative of

the inspection report should be in the following format. Drop-in

inspections may be documented in aF abbreviated format.

I. Introduction (Done on a separate sheet)

A. Name and address of entity

B. EPA 10 Number (WAD )

C. Date(s) and Time(s) of Inspection, and Date of Inspection

Report.

D. Type of inspection (i.e., CEI, CME, Record Review) More

than one type of inspection may·be occurring -- all types

should be listed beginning with most prevalent

E. Reason for evaluation

F. Personnel present during inspection (list all Ecology,

EPA, and entity personnel)

(-e

II. Facility Description

Brief description of manufacturing processing including

description of generator or interim status/permit activities,

etc., including types, number, and capacity of units (i~ no

changes have occurred since the previous inspection, reference

to the past report may be adequate). A .brief description of

the handlers regulatory history including the status of any

permit proceeding may be included. Significant findings since

the last inspection may also be noted.

•

t

III. Description of Inspection

A. On-site walk through

1. Units

2. Physical violations

3. Other items of significance

B. On-site record review

1. Documents reviewed, including time frame of records

reviewed, manifest records - 1988-1990 (land

disposal/restriction evaluation should be placed in

Section VI). .

2. Violations -

3-9-17
C. Sampling (results may be added a brief addendum to report)

l.

2.

3.

Methodology

Proposed analysis

Violations (sampling or proposed analysis)

Q

D. Off~site record/plan review (not required for state

priority inspection)

1. Documents reviewed

2. Violations'

a. Financial requirements

b. Other

IV. Special Considerations

A. Cross Media Issues

B. Other

C. Changes in operations which ~elate to hazardous waste

management since last inspection, if appropriate

V. Attachments

A.

B.

Checklist(s)

Photographs Q

VI. Land Disposal Restrictions (LOR)

A. Documents reviewed

B. Violations . All violations should be referred to the EPA

for enforcement. If Ecology...becomes authorized to administer the HSWA program, Ecology staff will conduct any

necessary enforcement follow-up.

2.4.2 Summary of Inspection

A copy of Section I of the inspection report and the information listed

below should be submitted to a confidential file. This is not considered a part of the inspection report, but it can provide a basis for

enforcement recommendations and it is needed to received "credit" for

the inspection.

A. List of areas evaluated (see RCRIS reporting instructions)

B. List of violations and classification

3-9-18
C. Other (i.e., entity actions since prior inspection, need

for further investigation, other pertinent subjective

information) (as necessary) , .

•

D. High priority/significant violator (Yes/No)

2.4.3 Filing Inspection Reports and Related Information

Upon completion of the inspection report, inspectors should organize the

report notes and other documentary information into a non-confidential

inspection file. The non-confidential inspection file should contain

the inspector's report and all forms of non-confidential documentation,

which may include:

• Objective inspection notes.

• Documents relating to sampling, as appropriate (e.g. I custody

records, analytical results).

• Photographs.

• Drawings and maps.

A separate confidential or internal file must be used for all

confidential business information (CBI)"enforcement recommendations,

and any subjective information about the entity, including the summary

of inspection listed above (2.4.2). When an enforcement action is

issued, the enforcement action becomes non-confidential information,

however, the enforcement recommendation must still be maintained in a

confidential file (Assistant Attorney General opinion, March 9, 1990).

Chapters 42.17.260 RCW and 42.17.310 specify documents that state

agencies must maintain in confidential files.

2.4.4 Inspection Report Preparation Timeline and Review

Internal review of the inspection report should be conducted by a

dangerous waste inspector (or equivalent) other than the inspector that

wrote the report and one'and only one supervisor (either unit leader or

section supervisor). When two or more dangerous waste inspectors

inspect a facility, one of the team members can provide the required

peer review.

A copy of the inspection report should be transmitted to the Hazardous

Waste Development and Support Section (ffi1DSS). The hazardous waste

program planner reviews the report for quality control and is responsible for keeping the program manager, the EPA, and Ecology's Comprehensive Planning Section informed about the status of the program

planning commitments. To expedite these program planning activities:

• All inspection reports should be submitted to the ffi1DS program

planner within 3S working days of completion of the field work .

• Inspectors should enter all preliminary inspection report data into

the RCRIS reporting system within five working days of completion

3-9-19
of the field work. The RCRIS system should be completely updated

within five working days of completion of the report.

The inspection report contains nonconfidential ,information and can be

~nt to the facility inspected upon'request. However, completed reports

should not be systematically mailed out to facilities as the inspector

can be unnecessarily burdened with insignificant questions or complaints. .

2.5 Enforcement Proce••

The inspection 'report and enforcement confidential file. are developed to

document the compliance status of inspected' facilities with respect to

Chapter 173-303 \JAC.' Ecology'.s enforcement policies were .writtento

establish a consistent approach for the agency when confronted by

violations of the dangerous waste regulations.

Policy 1-20 of the Agency Policy manual, "Establishing Ecology's

Enforcement Policy," establishes policy.f9r, enforcement activities

administered by Ecology. This policy is fu~the~:elaboratedonin the

Ecology Enforcement Manual: Guidelines and Procedures. The Enforcement

Manual provides guidance on the following subjects:

• Formal and informal enforcement tools

• Types of violations

• Innovative enforcem~~t se~tlement

Use of discretion in determining enforcement ~esponse

• Escalation of penalties .

• Procedures for issuing enforcement actions

• Post issuance procedures including appeals and collection of

penalties .

Q

The Dangerous Yaste

Enforcement Manual.

ing areas:

Enforc~ment Guidelines are ,a .subset.of~heEcology

These guideli~es provide ~efinition i~. the follow-

•

•

•

I

Selecting enforcement options for dangerous waste program

violations

Determination o~ penalty amount

Mitigation of penalties

Time frame for action issuance

Example violations and recommended responses

3-9-20
•

In addition to the preceding policies, the SHW Program Policy and Procedure Manual contains specific guidance on enforcement process for public

entities (Policy 3-1), dangerous waste generators in violation of

storage requirements (Policy 3-2), and enforcement process for late

Part B Permit applications (Policy 3-11).

2.5.1 Recommendations for Enforcemept

Recommendations for enforcement are written from the inspector to the

regional office section supervisor. An exception to this is the NWRO

where recommendations for enforcement are directed to the regional

eriforcement; coordinator.

2.5.2 Enforcement "Action Format"

Enforcement actions issued by dangerous waste staff are generally either

compliance letters, administrative orders, or administrative orders plus

penalties (see dangerous waste enforcement guidelines for appropriate

use of these actions and signature authority). Field compliance letters

are compliance letters issued before the inspector leaves the facility

and can be used when the violation is obvious and should be corrected

without delay. Only experienced inspectors should issue field compliance fetters. "

All enforcement actions must be written in a clear and consistent

format. Recommendations for enforcement, enforcement orders, penalties,

.and compliance letters should "be in the following format.

Recommendations for Enforcement

1. Introduction.

2. Background.

3. Recommendation.

Enforcement Order

1. Title block (see example).

2. Brief description of Chapter 173·303 WAC regulatory authority.

3. Brief description of how the activities of the entity relate to

this TJAC.

4. Observed violations of Chapter 173·303 TJAC.

5. List of orders with timeframes for completion.

6. Describe the available penalties if orders are not fot"lowed.

7. Describe the Pollution Control Hearings Board (PCHB) appeals

process.

3-9-21
8. Signature of Program Manager.

hn,lU

1. Title block (see example).

2. Notice of penalty and amount of penalty.

3. Brief description of how the entity relates to the re~latory

authority of Chapter 173-303 WAC.

4. Observed violations of Chapter 173-303 WAC.

5. Describe the penalty process:

a. When penalty is due.

b. Where to pay.

c. Provision for submitting an application for relief.

d. Ecology's responsibility in responding to application for

relief.

6. Describe the PCHB appeals process:

a. Address of PCHB

b. \1

. Thirty-day time limit. c~"'-....

7. Signature of Program Manager.

8. Application for relief form.

Compliance Letter

1. Review date and time of inspection~

2. Summarize Chapter 173-303 WAC authority.

3. List violations.

4. List measures to correct noncompliance with timeframes.

5. Describe any follow-up activities Ecology will take.

6. Signature of inspector.

3-9-22
DATE: December 1, 1993 PAGE: 1 OF 3

CANCELS: NEW

O\t~f1

SEE ALSO: PRO 3-27

APPROVED BY:-----

POLICY

•

•

POL 3-27 COST RECOVERY USING MTCA ALTERNATIVE AUTIlORIlY

RCW 70.105D.050(3) requires that the department seek to recover the amounts

spent for investigative and remedial actions and orders from the owner/operator

(0/0). It is the department's intention to recover those costs which are

reasonably attributable to sites. While timing of cost recovery for individual sites

will be considered on a case-by-case basis, the department expects payment of

costs as they are incurred. When the owner and operator are separate individuals

or corporations, both will be sent billing statements.

1. For The Purpose Of This Policy. Costs Are Defined In The FollowinKWay:

Remedial corrective action costs are those reasonably attributable to the site and

may include costs of direct activities, support costs of direct activities and interest

charges for delayed payments. The department shall charge an hourly rate based

on direct staff costs plus support costs. The department shall use the following

formula for computing hourly rates:

Hourly rate = DSC + DSC(ASCM) + DSC(pSCM), WHERE

DSC = Direct Staff Costs defined in (a) below:

ASCM = Agency Support Cost Multiplier defined in (b) below:

PSCM = Program Support Cost Multiplier defined in (c) below:

(a) Costs of direct activities are all related costs of direct activities and shall

include both direct staff costs (DSC) and other direct costs (ODC). DSC's

are the costs of hours worked directly on a contaminated site and include

salary, retirement plan, social security, health care, leave and holiday.-and

other benefit required by law to be paid to, or on behalf of, employees.

ODe's are costs incurred as a direct result of department staff working on

a contaminated site and include goods and services, equipment, travel,

contractual and laboratory services. If under one hour, direct staff costs

will not be charged as such.

(b) Agency Support Costs are the costs of facilities, communications,

personnel, fiscal, and other state-wide and agency-wide services. The

Agency Support Cost Multiplier (ASCM) used shall be the agency indirect

rate approved by the agency's cognizant federal agency for each fiscal year.

J

HWTR 3-27 December 1, 1993
DATE: December 1, 1993 PAGE: 20F3

CANCELS: NEW SEE ALSO: PRO 3-27

(c) Program Support Costs are the costs of administrative (i.e., non-DSC) time

spent by site managers and other staff who work directly on sites and a

portion of the cost of management, clerical, policy, computer, financial, and

other support provided by other program staff to site managers and other

staff who work directly on sites. Examples of other activities not included

in Program Support Costs include policy development, DW Regulation

development, and a portion of non-site compliance, managment, computer,

financial and other support staff. The Program Support Cost Multiplier

(PSCM) used shall be that established by the Toxies Cleanup Program.

(TCP). The PSCM was calculated by dividing actual TCP Program.

Support Costs by all Direct Staff Costs charged to site-related work.

o

t-----

2. All Consent Decrees. Aueed Orders. And Unilateral Orders Shall Contain

Provisions For Cost RecoveQ'.

The HWTR and TCP Program Cost Recovery Coordinators shall insure that

each consent decree or order includes a provision for cost recovery.

3. The Cost RecoveQ' Unit of Ecolo2,Y's Fiscal Office Shall Maintain Documentation

Of Corrective Action Costs.

Ecology's Fiscal Cost Recovery Unit is responsible for maintaining site files which

document all agency costs associated with the investigative and remedial actions

at each site.

4. The Cost RecoveQ' Unit of Ecolo2,Y's Fiscal Office Shall Provide Itemized

Statements Documentin2 Costs Incurred.

The Fiscal Cost Recovery Unit shall prepare billing statements in the time frame

specified in the decree/order.

Statements shall include cost documentation such as copies of Time Accounting

Reports, Agency Financial Reporting System (AFRS) reports, calculation of

Program. Support and Agency indirect rates and costs, and other documentation

appropriate to the specific site.

HWfR 3-27 December 1, 1993
DATE: December 1, 1993 PAGE: 3 OF 3

CANCELS: NEW SEE ALSO: PRO 3-27

s. Qnly Approved Invoices Shall Be Issued To The Owner/Operator (0/0).

The HWIR Program Cost Recovery Coordinator and the Site Manager shall

approve all invoices before they are sent to the 0/0.

The Site Manager shall signify approval of all direct charges by signing the invoice

cover memo (see PRO 3-27).

6. Interest Shall Be Char'ied In The Followin2 Way;

Interest shall be charged at the maximum allowable rate (at least 12%) on

invoices not paid within thirty (30) days as specified in the decree or order. If the

interest rate is specified in the decree/order, it shall be followed accordingly;

otherwise the interest charged shall be simple interest at a rate of twelve percent

(12%) per annum or the maximum allowable rate at the time, according to

RCW's 4.56.110 and 19.52.020. .

7. The HWfR Pro2fam Cost Recovea Coordinator Shall Report Cost Recovea

Data To The HWfR Mana2ement Team, at Least Quarterly.

Reports shall include the total amount of costs billed during the quarter, the total

amount of payments received, and problem areas which need the attention of the

Management Team.

HWTR 3-27 December 1, 1993
DATE: December 1, 1993 PAGE: 1 of 4

CANCELS: NEW SEE ALSO: POL 3-27

APPROVED BY:------- PROCEDURE o

PRO 3-27 COST RECOVERY OF CORRECTIVE ACTION EXPENDITURES USING

STATE ALTERNATIVE AUTHORITY (HTCA)

Definitions:

Quarterly billings: The billing cycle will be

established with the initial billing. Billing will

normally be quarterly (every three months), but may be

on a staggered schedule to provide a manageable

workload.

Action by: Action:

site Manager,

working with an

Assistant

Attorney

General

Negotiation

Review Team

Representatives

2.

3.

Documents all necessary cost recovery

stipulations in consent decrees and

orders with these cost recovery

provisions: payment schedule (generally

quarterly); clear name and address for

billings; whether past costs are

included or excluded, if excluded, then

start date.

Submits draft decree/order to the

Negotiation Review Team Representatives,

as required by Policy SOOA, for review

and advice.

Complete reviews within the timeframe

requested (minimum of five days).

Discuss comments with Site Manager.

o

4. Elevate any major unresolved issues,

after discussion with the Site Manager

and Section Manager involved, in

accordance with POL SOOA.

site Manager S. When decree/order is final, summarizes

cost recovery information on a Cost

Recovery and Final Document Form

(Attachment A).

6. Sends three copies of the final consent

decree/order and one copy of the Cost

Recovery and Final Document Cover Form

(Attachment A) through the Regional

Supervisor to the Negotiation Review

Team Coordinator.

--- -- -~ -- -~-----

--------- ----

Negotiation

Review Team 7.

I Coordinator

:------------------------- -------- ----- ------ ,

Enters the final decree/order in the

central file of decrees and orders. CJ

HWl'R 3-27 December 1, 1993
DATE: December 1, 1993 PAGE: 2 of 4

e·

CANCELS: NEW

HWTR Cost

Recovery

Coordinator

Fiscal Cost

Recovery unit

HWTR Cost

Recovery

Coordinator

SEE ALSO: POL 3-27

8. Transmits 2 copies of the final

decree/order and the Cost Recovery and

Final Document Cover Form to the HWTR

Cost Recovery Coordinator.

9. Transmits a copy of the final

decree/order and the Cost Recovery and

Final Document Cover Form to the Fiscal

Cost Recovery Unit.

10. Prepares the billing package, which

includes:

a. a cover memo with signature block for

the site Manager to approve costs;

b. an invoice which includes direct

staff charges, other direct charges,

support charges and interest charges;

c. copies 9f time accounting reports for

the site for the billing period which

include hourly charge-out rates for

employees who direct charge;

d. copies of the statewide Accounting

Information and Retrieval System

(STAIRS) reports for the billing period,

and a memo explaining any anomalies;

e. other documentation appropriate for

the specific invoice or required by the

decree/order.

11. Transmits billing package for each

eligible site to the HWTR Cost Recovery

Coordinator on the schedule established

with the first invoice. The first

invoice also includes a "Uniform Chart

of Accounts" or other explanatory

information on AFRS.

12. Reviews billing packages for

reasonableness.

13A. Transmits billing packages to

appropriate site Managers (Billing

package may be faxed to regional office

for faster turn around, with original

hard copies to follo~), and notifies

HWTR 3-27 December 1, 1993·
DATE: December 1, 1993 PAGE: 3 of 4

CANCELS: NEW

HWTR Cost

Recovery

Coordinator

site Manager

SEE ALSO: POL 3-27

section Manager of transmittal, or:

13B. Notifies Fiscal and/or other appropriate

staff of problems with the documentation

within three days of identification of a

problem.

14A. Reviews billing package for accuracy,

signs (if accurate), and transmits to

the HWTR Cost Recovery Coordinator, or:

14B. If errors or questions are noted,

discusses problem with HWTR Cost

Recovery Coordinator immediately, and

returns unsigned cover letter (NOTE:

Cover letter may be signed and

conditioned by changes), invoice,

documentation, and memo explaining

problem.

o

HWTR Cost

Recovery

Coordinator

Fiscal Cost

Recovery Unit

15A. Transmits signed invoices to Fiscal Cost

Recovery Unit, or:

15B. Prepares Memo to Fiscal Cost Recovery

Unit explaining necessary corrections

(and Fiscal approved correction form if

changes involve charges by a program 0

other than HWTR) .

16. Transmits billing to the party

identified on the approved invoice.

Notifies the Site Manager before sending

any documentation to the % that is

different from what the Site Manager has

already seen.

(NOTE: When a current invoice exceeds

$100,000, the invoice is sent "return

receipt registered" mail.)

17. If changes have been made, prepares

corrected invoice and returns to Step

Number 11.

18. Notifies HWTR Cost Recovery Coordinator

when payment is received, or a second

notice is sent to an 0/0.

Periodically, but not less frequently

than quarterly, reports payments made by

0/0 and any delinquency notices which

have been sent to th~ 0/0.

1

HWTR Cost

Recovery

Coordinator

HWTR

19.

3-27 December 1, 1993

o
DATE: December 1, 1993 PAGE: 4 of 4

CANCELS: NEW SEE ALSO: POL 3-27

20. Tracks cost recovery revenue of

individual sites through AFRS reports or

HWTR Accounting System

PERIODICALLY, AND WHEN INVOICE PAYMENTS ARE

DELINQUENT:

Fiscal Cost

Recovery Unit

HWTR Cost

Recovery

Coordinator

site Managers

HWTR Cost

Recovery

Coordinator

Fiscal Cost

Recovery Unit

21. Sends report of delinquent invoices to

HWTR Cost Recovery Coordinator.

22. Sends report to HQ Corrective Action

Team and portions of report to site

Managers in Regions for Review.

23. Note % who should'be exempted from

delinquency notices and reasons why;

return report to HWTR Cost Recovery

Coordinator.

24. Returns list to Fiscal Cost Recovery

Unit.

.25. Sends delinquency notice to % who has

not been excluded by site Managers.

HWTR 3-27 December 1, 1993
TO:

December 1, 1993

_________, HWfR Site Manager, _ c

TIIROUGH: Alan Jennings, HWfR Cost Recovery Coordinator

FROM: Renee Dieckman, Supervisor

Federal Grants/Cost Recovery

SUBJECT: Cost Recovery Site Invoice Review

Attached are the expenditure reports for the period

for the following site:

Site Name:

Order #:

through

Reports included in this packet are the following:

1. Draft Invoice

2. Agency Financial Reporting System (AFRS) Reports

3. Agency Overhead Worksheet(s)

4. Statewide Accounting, Information & Retrieval (STAIRS) Reports

·5. Summary of Accounts Payable Report(s) .

6. Time Accounting Report(s)

The first three items are summary reports. For review purposes, concentration should be

placed on items four thru six. The purpose of all reports is explained in attachment # 1

to assist you in your review.

Please review these reports to determine if they reflect appropriate changes to this

project. Upon completion of this review, please sign and return the packed in its

entirety to your Cost Recovery Coordinator. If you have any questions, need additional

information, or detect errors, call your Coordinator immediately. All approved packets

should be returned to:

Alan Jennings, Cost Recovery Coordinator

HWTR Program

P.O. Box 47600 MS: 7600

Olympia, WA 98503

Once you have completed your review of these reports, and have determined that they

reflect appropriate charges, please sign and date below.

As Site Manager, for the above-mentioned Corrective Action Cleanup site, I have

reviewed the attached financial reports and find them to be reasonable.

o

I

I

..

I

I

Signature Date

------

o --------
CABUOGET.xLS

DATE----- e CORRECTIVE ACTION - eUDGET ESTIMATING WORKSHEET

CA SITE NAME

START DATE

PROJ DESCRPTlON

END DATE _

PIC ---

AGENCY INDIRECT (.2987x (PERSONNEL»

TOTALESTIMATED COST

* EMPLOYEE POSITIONS ARE CLASSIAED INTODIFFERENi CATEGORIES THAT CARRY THEIR

OWN HOURLYRATE.

NOTE: PERSONNEL COSTS ARE BASED ON ESTlMATED HOURS ATTHEESTABUSHED HOURlYRATE.

~. - -.::.- 7
DATE: December 1, 1993 PAGE: 1 of 6

CANCELS: NEW

POLICY

POL 3-29 NEGOTIATION REVIEW TEAK

APPROVED BY:------

c

will

The

from

2.

The Negotiation Review Team is established to provide

agency-wide quality assurance in the cleanup of

hazardous waste corrective action sites. It provides a

clearinghouse for the implementation of the Model

Toxics Control Act (MTCA) and a focal point for policy

and technical issues. It is advisory in nature and

will elevate to management any major program issues

needing resolution.

The Negotiation Review Team Consists of Four Persons.

The Negotiation Review Team will be made up of a

technical reviewer; policy reviewer, cost recovery

reviewer and an Assistant Attorney General. Each will

focus their review to issues appropriate to their

expertise. The cost recovery and policy reviewers

be assigned by the TCP and HWTR Program Managers.

technical reviewer is selected by the site manager

the established list (Attachment A). The policy

reviewer will be the Review Team Contact. Alternates

to the review team will be designated.

The Following Documents Shall Be Submitted To The

Review Team Prior To External Distribution.

(a) All corrective action (CA) draft orders and decrees

proposed by HWTR, TCP and Industrial section staff

shall be submitted. This would include orders

(excluding emergency orders) or decrees prepared

pursuant to RCW/s 70.1050 and 70.105. At least one

copy of any pertinent technical document needed to

understand the requirements of the order or decree

should be attached.

(b) Significant amendments to all previously signed

orders and decrees prepared pursuant to RCW/s 70.1050

and 70.105 that are proposed by HWTR, TCP and

Industrial section staff shall be submitted. At least

one copy of any pertinent technical document should be

attached.

(c) Draft corrective action plans using MTCA.

(d) Draft cleanup standards or levels whenever they are

being set for a site specific action.

(e) Prepayment agreements.

o

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HWTR 3-29
DATE: December 1, 1993 PAGE: 2 of 6

CANCELS: NEW APPROVED BY: _

3. The site Manager Shall Submit 4 Copies Of The Document

with Completed Cover Form.

The site manager will submit a completed cover form

(Attachment B) with four (4) copies of the document to

the Review Team Contact before sending the documents to

the owner/operator(s). One copy each of pertinent

technical documents shall also be attached.

4. The Review Team will Generally Provide Review within 5

Working Days From The Date Of Receipt Of Documents.

The Review Team, when necessary, will review documents

within five (5) working days; however, if the documents

can be submitted for a longer time period, that should

be indicated. The Review Team will attempt to provide

quicker review under some circumstances. The request

for a quicker review time must be discussed and cleared

with the Review Team Contact. If, on receipt, the

Review Team Contact is aware of other time commitments

such that the team cannot meet the normal deadline, the

site manager will be notified immediately.

5. The Review Team will Contact The site Manager with

Comments.

If any member of the Review Team has comments on the

document(s) being reviewed, he/she will notify the site

manager directly or submit comments to the Review Team

Contact to be forwardea.

Generally, the comments will be relayed orally unless

written comments are requested by the site manager. If

the site manager does not hear from or receive written

comments from the Review Team by the agreed upon date,

he/she is free to proceed.

6. The Review Team will Elevate Major Issues To

Management.

If, during the course of the review, a major policy or

technical issue is discovered that requires resolution,

the Review Team Contact will elevate the issue through

the Policy section Supervisor. Only major issues will

be elevated and only after discussion with involved

staff and supervisors.

HWTR 3-29 December 1, 1993
DATE: December 1, 1993 PAGE: 3 of 6

CANCELS: NEW APPROVED BY:------

7. If, During The Negotiations, The Document Is

Substantively Changed, Then The Review Team Contact

Shall Be Apprised Of changes.

If, during the negotiations, elements of the document

have changed. SUbstantively, then the site manager shall

notify the Review Team Contact. Of particUlar concern

to the Review Team are significant changes in the Cost

Recovery provisions or cleanup levels.

The Review Team will provide immediate feedback if any

problems are perceived. The Review Team will not

participate in negotiations but may be relied on to

provide technical assistance throughout the process.

o

8. Final Documents Shall Be Submitted To The Review Team

Contact For The Central File.

Two copies of all final consent decrees, orders,

corrective action plans, and all SUbsequent amendments

shall be submitted to the Review Team Contact within 15

days of finalization of the document. A copy of the

"Cost Recovery Information Form" (Attachment C) must be

completed and submitted with the document.

9. The Management Team will Review The ongoing Need For

And Membership Of The Negotiation Review Team On A

Yearly Basis.

c

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HWTR 3-29 December 1, 1993
DATE: December 1, 1993 PAGE: 4 of 6

CANCELS: NEW APPROVED BY: _

Attachment B

~\

()«(.~ NEGOTIATION REVIEW TEAK

COVER PORK

Date----------

TO: Curtis Dahlgren

Alan Jennings

Technical Reviewer

FROM:

, Policy

., HWTR Cost Recovery , Ast Attorney General

(Site Manager)

Assigned Assistant Attorney general

Date Comments Needed (5 day minimum)

Site PIC (if known)

Type of Document:

Agreed Order [ ]

Emergency Order [ ]

Enforcement Order [ ]

Consent Decree [ ]

Fed Fac Agreement [ ]

Phase of Work:

RCRA Fac Assessment [ ]

Routine Action [ ]

Remedial Action [ ]

Other Information:

RCW 90.48 [ ]

RCW 70.105 [ ]

state MOA [ ]

Other [ ]

Feasibility study [ ]

Interim Action []

Cleanup Action []

NOTE: Please attach one copy of any pertinent, technical

document to the technical reviewer's copy.

HWTR 3-29 December 1, 1993
DATE: December 1, 1993 PAGE: 5 of 6

CANCELS: NEW APPROVED BY: _

TECHNICAL REVIEWERS c

Attachment A

~~~.The site manager is responsible for routing one copy of the

document, with any technical appendices necessary, idrectly

to the appropriate Technical Reviewer. It is only necessary

to send the document to one of the technical reviewers for

each particular phase of work.

The decision of which technical reviewer should look at

document is left to the discretion of the site manager.

following table lists the technical reviewers available

the different phases of work.

the

The

for

Phase of Work Technical Reivewer(s)

Routine Corrective Action H Steeley or E McManus

Remedial Investigation H Steeley or E McManus

Feasibility Study H steeley or E McManus

Interim Action H Steeley or E McManus

Corrective Action Plan H Steeley or E McManus 0

Engineering Design Report H Steeley

Detailed Plans & specifications H Steeley

Operations & Maintenance Plan H Steeley

- ----_._- --~ - -- --~- -------- ------- -- - ----

HWTR 3-29 December 1, 1993
DATE: December .1, 1993 PAGE: 6 of 6

CANCELS: NEW

.1Q~~<i~aChment C

APPROVED BY: _

COST RECOVERY INFORMATION FORK

TO:

FROM:

HWTR Cost Recovery Coordinator

SUBJECT: Final Document

DATE: WAD #

site PIC site Name:

Site Register #

Project #

Owner/Operator Name

Site Manager

Office Location

(Cost Recovery Coord Provides)

Phone

Type of Document:

Agreed Order [ ] RCW 90.48

Emergency Order [ ] RCW 70.105

Enforcement Order [ ] State MOA

Consent Decree [ ] Other

Fed Fac Agreement [ . ]

Effective Date of Document:

Assistant Attorney General

Is % Address Shown in Document? Yes No

(If No, Put Address Here)

[ ]

[ ]

[ ]

[ ]

Are Past Costs Included?

(If Yes, Include Time Period)

Prepayment Agreement?

(If Yes, Describe Here)

Yes

Yes

No

No

HWTR 3-29 December 1, 1993
DATE: December 1, 1993 PAGE: 1 OF 3

CANCELS: NEW

'Q~tf.\ APPROVED BY:

POLICY

POL 3-31 PREPAID CLBANOP OVERSIGHT

Due to limited resources, Ecology cannot work on every

contaminated Corrective Action (CA) site. However, an

owner/operator (0/0) may wish to begin remedial action

at a facility, or several facilities, under its

jurisdiction, before Ecology is ready to proceed with

any such action. In these situations, the % may also

desire Ecology's oversight of their remedial actions.

If requested, Ecology may enter into an agreement with

the % to oversee their remedial actions, provided the

0/0 agrees (1) to pay in advance for the department's

costs and (2) the terms of the proposed agreement are

acceptable to both parties. This policy outlines the

requirements and limitations of such an agreement.

This policy is not intended to address IndependentCA

Cleanups where the % is not seeking Ecology

Oversight.

1. Prepayment Shall Be Required.

If an % has a site which is not prioritized for

immediate action by the department, and wants to clean

it up with the department's advice and oversight, then

he/she may request an agreement with the department to

pay for such oversight. Prepayment of such costs will

be required. Prepayment methods shall be written into

such agreement, and shall include a requirement that

deposits be made before work is begun. Such deposit

shall remain in the account until the last billing.

All interest earned on that deposit will remain with

the State of Washington.

2. owner/Operator [Respondent] Agree (s) To Negotiate""

A Consent Decree.

The O/O(s) agree(s) to enter into negotiations on a

Consent Decree or Agreed Order covering the anticipated

actions on the site in which Owner/Operator(s) will be

referred to as "Defendant(s)".

o

o

HWTR 3-31 December 1, 1993

c
DATE:

CANCELS:

December 1, 1993

NEW

PAGE: 2 OF 3

3. The Agreement Shall Address All Phases of Work.

In order for the department to commit to an agreement

the % must be willing to address all phases of work

within the prepayment agreement. This agreement shall

estimate the direct and indirect costs the department

will expend to oversee all phases of the CA cleanup

from initial investigation through long-term

monitoring.

4. Preoavment will Be Accomplished Through Formal

Agreements.

The formal agreement for prepayment of the department's

technical assistance will take the form of either an

Interagency Agreement (I/A) when the entity is pUblic

or a Memorandum of Agreement (MOA) when the entity is

private. These agreements shall cover all anticipated

costs (through all phases). These agreements shall not

replace, but be preliminary to, or work in conjunction

with, any Consent Decrees or Agreed Orders which occur

to effect the CA cleanup. When a Consent Decree or

Agreed Order is in place to cover remaining anticipated

costs, the Consent Decree or Agreed Order may replace

the original agreement, provided the Consent Decree or

Agreed Order includes all costs covered by the original

agreement.

5. Prepayment Agreement Shall Include the Full Cost

of Hiring and Maintaining Additional staff.

Because all new employees require extensive training

and supervision, and experienced employees require

continued training and direction to remain effective,

it is essential that the costs of a proportional share _

of the training and management activities be covered oy·

the prepayment agreement. It is necessary for

employees working on prepayment agreements to be able

to charge a proportionate share of that time to the

prepayment projects, and not be an excessive drain on

current funding which is dedicated to work on priority

activities. It is the intent of this policy to allow

work on CA projects which are not a high priority for

the department with resources (including employees)

hired specifically for prepayment project(s), and

without the use of resources (including employees)

dedicated to current program plan activities.

HWTR 3-31 December 1, 1993
DATE:

CANCELS:

December 1, 1993

NEW

PAGE: 3 OF 3

This does not preclude other Hazardous Waste & Toxics

Reduction (HWTR) Program or other agency staff from

charging to this Agreement, provided they follow Site

Log Policy (3-37) and Procedures.

6. Public Notice Shall Be Required For All such

Agreements.

The department shall provide public notice on all

agreements consistent with WAC 173-340-600. This

includes notice to those who have made a timely

request, those residing in the potentially affected

vicinity, the newspaper of largest circulation and a

public comment period. Notice will also be provided in

the site Register maintained by the Toxics Cleanup

Program.

7. Agreements Shall Be Amendable.

o

Anytime the department estimates that advice and

oversight will require more staff time, more dollars,

or a longer period of time, the agreement shall be

amended to reflect the new estimate.

8. Amendments To These Agreements Will Also Have

Public Notice.

c

All substantive changes to these agreements shall

receive pUblic notice and comment.

9. This Policy Shall Be Reviewed By The HWTR program

Management Team At Least Once Every Two Years.

At least once every two years, the HWTR Program

Management Team shall consider the status of the

Prepayment program, comments and concerns expressed

since the last revision, and consider the need for

further revision.

HWTR 3-31 December 1, 1993
DATE: December 1, 1993 PAGE: 1 of 2

CANCELS: NEW '

PROCEDURE

SEE ALSO:

Approved by __

PRO 3-33

Action by:

REQUESTING A PROGRAM INDEX CODE

Action:

Project/Site Manager

Regional Supervisor

HWTR Cost Recovery

Coordinator

1.

2.

3.

4.

s.

Determines corrective action site is a

candidate for cost recovery under the

MICA alternative authority.

Prepares Conceptual Approval Form (CAF)

and Workplan Amendment Forms.

Signs and submits CAF and Workplan

Amendment Forms to the Regional

Supervisor.

If approves, signs forms and sends them

to the HWTR Cost Recovery Coordinator.

a. If denies request, returns unsigned

forms to Project/Site Manager.

Reviews the CAF for impact on the

Program workplan and budget.

Program Manager

HWTR Cost Recovery

Coordinator

3-33

6. Submits the CAF to the Program Manager.

7. Informs Regional Supervisor of any delay

beyond three days after receipt.

8. ,Approves or denies CAF.

9. Returns signed form to Cost Recovery

Coordinator OR:

10. Returns unsigned form to Regional

Supervisor and informs Cost Recovery

Coordinator of the decision.

11. Retains original CAF and

Distributes copies to:

December 1, 1993
DATE: December 1,1993 PAGE: 2 of 2

CANCELS: NEW

Action by;

HWTR Cost Recovery

Coordinator

12.

SEE ALSO:

Action;

a. Project/Site Manager

b. Regional Supervisor

c. HWTR Central File

Notifies HWTR Program Planner who

modifies planning database.

o

13. Obtains new PIC and Project # from

Budget Analyst.

14. Updates Program/Section PIC List with

the new PIC and ProJect fl.

o

o

3-33 December 1, 1993
0 HAZARDOUS VASTE & TOXICS REDUCTION CLEANUP PROGRAM

CONCEPTUAL APPROVAL FORM (CAF)

[] PIC REQUEST *

[ ] CA SITE REQUEST *

[ ] New

(CHECK ALL APPROPRIATE) [ ] Additional $

CORRECTIVE ACTION SITE DESCRIPTION (If in workplan, site name is sufficient)

NAME VAD II

PROPOSED BEGIN DATE END DATE

COST RECOVERY ESTIMATE -- TOTAL $ THRU BIENNIUM $

SITE MANAGER -- CLASS TOTAL HRS THRU BIENNIUM (HRS)

OTHER STAFF -- CLASS TOTAL HRS THRU BIENNIUM (HRS)

LAB ESTIMATES - - TOTAL $ , THRU BIENNIUM $

OTHER ESTIMATES -- TOTAL $ THRU BIENNIUM $

IS THIS OWNER/OPERATOR VILLING TO MAKE PRE-PAYMENT?

"[] YES [] NO

SITE MANAGER DATE

(signature)

REGIONAL SUPERVISOR DATE

(signature) -"-

COST RECOVERY COORD DATE

(signature)

[] PIC CODE [ ] APPROPRIATION CODE [] FUND INDEX CODE

IPROGRAM MANAGER DATE

I

(signature)

3- 33 December 1, 1993
DAXE: December 1, 1993 PAGE: 1 of 2

CANCELS: NEW SEE ALSO: EIM 411

POLICY

Approved by

3-35 SIXE FILE'S -- CREATIOH, MAINTENAHCE " BXEMPTIOH

The Site File Is A Formal Record Of All Ac~ivi~ies.

a. Site files correspond to a specific corrective action site. They

are maintained separately from working files.

b. Originals of all incoming documents/correspondence will be timely

(within 20 working days) labelled and filed.

c. A copy of all documents sent out of the office will be timely

labelled and filed in the site file.

d. No comments will be written on original documents.

e. Site·files will be kept in a central location of each

regional/field office.

2. The Manager Of Each Site Is Responsible For Site Files.

The site manager ensures that the site file is properly set up (with a

file index) and maintained; an ID number in pencil will be placed in

the upper righ~ corner· of each document.

o

3. Regional Office Public Records Coordinators Assis~ Site Managers In

Setting Up and Maintainig Site Files.

4. The HWTR headquarters' Public Records Coordina~or will provide the

following to site managers and their designeeCs):

a. A uniform filing schema for sites.

b. Training on the filing schema.

c. Labels for site headings and subheadings.

d. Training on Public Disclosure Laws Re: Exempt Status

o

5. Site managers/designees are responsible for identifying documents to

be exempt.

a. The AG Staff are the fina·l authority on exempt designation.

b. A separate, parallel file will be created for exempt documents.

c. An index will be created and maintained for the exempt file.

3-35 December 1, 1993

o
DATE: December 1, 1993 PAGE: 1 of 1

c~cns: Nn

'. ~~~~POL 3-36

SEE ALSO: POL 3-35

APPROVED BY: __

POLICY

EXEMPT DOCUMENTS

This policy applies whenever a site manager or Public

Records Coordinator determines a document in a corrective

action site file is exempt from pUblic disclosure.

1. The site Manager (Or Designee) Is Responsible For

Determining Documents As Exempt From Public Disclosure.

2. The Public Records Coordinator Provides Training To

site Managers On Public Disclosure Laws Regarding

Exempt Status Of Documents.

3. The Attorney General Division staff ARE The Final

Authority On Exempt Designation Of Documents.

4. Exempt Documents Are Placed In An Exempt File Parallel

To The site File Located In The Regional Office.

5. The Regional Public Records Coordinator Maintains The

Exempt site File.

a. An index of the exempt. file is placed in the front

of the site file.

HWTR 3-36 December 1, 1993
DATE: December 1, 1993 PAGE: 1 of 2

CANCELS: NEW SEE ALSO: POL 3-37

APPROVED BY:------- PROCEDURE

SITE LOG PROCEDURE

FOR TRACKING SITE ACTIVITIES IN SITE LOGS

o

DEFINITION: site Log -Information recorded on a Site

Log Form (see attached) to record work done by Ecology

employees that can be reasonably attributable to a

hazardous waste cleanup site.

ACTION BY':

Ecology employee

incurring costs

reasonably

attributable

to a hazardous

waste cleanup site

First Line Ecology

Supervisor

ACTION:

1. Completes a separate site

Log for each site-specific PIC

shown on Time Sheet for the

reporting period.

2. Each Site Log shall be

filled out, signed and

dated in ink; in increments

no smaller than 0.1 hr.; and

shall be consistent with

the time sheet. (See the note

in Section 3 on consistency

and Section 1 on administrative time in Policy 3-37.)

3. Submits the completed Site

Log to supervisor for review

along with the original Time

Sheet.

4. Reviews the Time Sheet.and

Site Log for accuracy and

consistency. (Refer to note in

Section 3 of Policy 3-37.)

5. Signs the Site Log to

verify site Log is accurate

and consistent with Time

Sheet.

6. Submits the original Time

Sheet/Site Log in a stapled

packet to the Time Accounting

section of the Fiscal Office.

o

HWTR 3-37 December 1, 1993 o
DATE: December. 1, 1993 PAGE: 2 of 2

CANCELS: NEW

Time Accounting

Federal Grants/

Cost Recovery Section

Toxics Cleanup

Program Cost Recovery

Coordinator

Federal Grants/

Cost Recovery Section

section

SEE ALSO: POL 3-37

7. Logs receipt of original

Time Sheet/Site Log packet

and forwards to the Federal

Grants/cost Recovery Section.

8. Verifies receipt of a site

Log for each site-specific PIC

shown on the Time Sheets.

9. Contacts Toxics Cleanup

Program Cost Recovery

Coordinator .if a site Log is

missing or hours shown on the

Site Log are less than hours

shown on the Time Sheet.

10. Contacts First Line

Supervisor and obtains

necessary information.

Forwards response to Federal

Grants/Cost Recovery Section.

11. Verifies information and

files in Fiscal site files.

HWTR 3-37 December 1, 1993
WAD /1

WASHINGTON STATE DEPARTMENT OF ECOLOGY

HAZARDOUS WASTE &TOXICS REDUCTION PROGRAM

SITE LOG

SITE NAME, ---'- MONTH YEAR, _

NAME PAYROLL 1-15 :I@IHtt::Ml?:::::TU~P.Jii!&~!:~ PERIOD 16-31 ----- PIC _

DATE HOURS ACTIV ACTIVITY DESCRIPTION

WORKED ITY (SEE REVERSE FOR TYPICAL ACTIVITIES)

IEMPLOYEE'S SIGNATURE DATE, _

DATA ON THIS FORM IS IN AGREEMENT THE EMPLOYEE TIMESHEETS

o

o

SUPERVISOR'S SIGNATURE

3-37

DATE _

December 1, 1993

o
Department of Ecology, Toxies Cleanup Program Staff Rates

Hourly rate schedule based on:

15.5% leave/holiday

83.0% program support

29.3% agency indirect

1 Administrative

2 Entry-Level Professional

3 Journeyman Professional

4 Staff Professional

5 Project Professional

6 Senior Project Professional

7 Staff Management

8 Senior Management

$34

$42

$48

.$55 E 3

$63 ep3

$70

$n

$94

DRAFT

costs.wk1,29-Nov-93
costs.wk1,29-Nov-93

o
Department of Ecology, Toxics Cleanup Program Staff Rates

e

Hourly Cost of TCP Employees

Projected

Pay Charge-out

Cateqory Classification Orade Rate

5 Computer Infor. Consultant 3 54 $63

5 Environmental Engineer 2 54 $63

5 Environmentalist 4 55 $63

5 Industrial Hygienist3 55 $63

5 Ecology Supervisor 2A 55 $63

5 Environmental Planner 3 55 $63

5 Hydrogeologist 3 55 $63

5 Contract Specialist 3 56 $63

5 Ecology Supervisor 28 57 $63

6 Ecology Supervisor 3A 59 $70

6 Ecology Supervisor 2C 59 $70

6 Environmental Planner 4 59 $70

6 Environmental Engineer 3 60 $70

6 Environmental Engineer 3a 62 $70

7 Environmental Planner 5 63 $n

7 Ecology Supervisor 38 63 $n

7 Environmental Engineer 4 64 $n

7 Ecology Supervisor 3C 65 $n

8 Ecology Supervisor 48 69 $94

8 AlD Waste Management 74 $94

costs.wk1,29-Nov-93
CANCELS: New

DATE: December 1, 1993 Page: 1 of 3

See Also: c

POL 3-39

Approved by:--------- POLICY

FINANCIAL ASSURANCE FOR CORRECTIVE ACfION

This policy is to provide guidance on financial assurance for corrective action

(FACA). RCRA Section 3004(u) requires facilities receiving or applying for

permits after November 8, 1984 to provide for financial assurance for the costs of

completing corrective action (CA). Detailed requirements for FACA were

proposed on October 24, 1986 (54FR37854); however, to date there are no final

financial regulatory procedures, requirements, or acceptable financial mechanisms.

1. Financial Assurance is Required To Ensure Completion of CA Cleanup.

2.

FACA is required in order to ensure that owners and operators of RCRA

treatment, storage and disposal (TSD) facilities undergoing CA have the means to

complete remedial obligations. Accordingly, this policy requires financial

assurance and provides for two allowable financial mechanisms: the Trust fund

and Financial Test.

CA Cost Estimates Are Reguired As Part Of The Cleanup Action Plan.

The cost estimate, prepared as part of the CA Engineering Design Report, serves

as the basis for FACA The cost estimate must include annual remedial CA costs

as well as their total costs. Annual cost estimates should account for all proposed

corrective action activities to be undertaken during a given year. Cost estimates

must be based on third-party costs.

o

3. The CA Cost Estimates Are To Be Adjusted/Revised Annually.

Corrective action inflation adjustments, unlike post-closure care estimates, must

be adjusted annually throughout the corrective action period even if CA continue

after other waste management activities have ceased. Annual revisions are

required when there are changes in the measures or duration of the corrective

action and for inflation. Adjustments for inflation are based on the Implicit Price

Deflator for GNP. Inflation adjustments are due 60 days prior to the anniversary

of establishment of a financial assurance trust or 30 days after the close of the

owner / operator's fiscal year when the financial test is used. Corrective measure

estimate adjustments are due 30 days after the modification approval.

3-39 December 1, 1993

o
5. FACA Financial Test Ensures Adequate Resources Exist to Finance CA.

6. FACA Trust Fund Ensures That Adequate Assets Will Be Accumulated For CA.

4. FACA Is To Be Included In The En2ineerin2 Desiw At TIme Of CA Remedy.

FACA must be included as part of the CA Engineering Design and be in place at

the time of CA remedy and approval of the operations and maintenance plan.

FACA is implemented through the permit process and/or through the corrective

action order or consent decree as provided for in WAC 173-340-440(6).

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

,

1

December I, 1993

Page: 2 of 3

See Also:

Approved by: _

3-39

DATE: December 1, 1993

CANCELS: New

.,,-, -~;'X·,

. r~;;. ;i ..'Ill>

The structure of the FACA trust fund differs from that used for closure and post-closure

care by the amount of financial assurance provided (based on CA cost estimates

occurring after a short pay-in period), by the pay-in period, and by the payment formula.

The FACA trust will cover that portion (i.e., not all costs) of CA remedial cost estimates

occurring after the pay-in-period. The reason for this is that facility owner/operator will

be paying for current corrective action costs during the pay-in-period. The

owner/operator will also be funding the FACA trust during this same pay-in-period.

The purpose of the FACA financial test is to ensure that the owner/operator of the

RCRA TSD facility undergoing CA has adequate resources to finance it. Please note

that the Bond, Letter of Credit, Insurance Certificate or Corporate Guarantee is not

included as an allowable financial mechanism for FACA TSD's selecting the financial

test mechanism for FACA will add the CA estimated costs for remediation to those

closure and post-closure cost requirements already included in their financial test. The

owner/operator must meet all the financial test requirements for the accumulative

amounts of closure, post-closure and CA estimated costs.

The purpose of the FACA trust fund is to ensure that there will be adequate funds

accumulated to finance the CA remediation after a short pay-in-period. The trust fund is

a pay-as-you-go financial mechanism. It is noted that during the pay-in-period, the TSD

facility will be financing current period CA costs along with funding the trust.

HWTR

e
CORRECTIVE ACI10N TRUST FUND EXAMPLE

Cost Estimate c

Year 1

Year 2

Year 3

Year 4

Year 5

$2,000,000

2,000,000

1,500,000

1,500,000

1,000,000

Year 6

Year 7

Year 8

Year 9

Year 10

$1,000,000

800,000

800,000

600,000

400,000

Total Corrective action costs ...... $11,600,000

Assumption: A permit has been issued for 10 years, the annual inflation rate holds

steady at 3% per year, the annual trust fund earnings rate is 5%, and that there are no

other changes in the annual estimated CA remediation costs. The pay-in-period (Y),

therefore, would be five (5) years. The balance required (BR) for Year 1 would be

$3,600,000 (Cost of funding for Years 6-10), the estimated cost after the pay-in-period.

The required first annual payment P(Year 1) would be computed as follows:

P(Yr 1) = (3,600,000 - 0) /(5 - 0); P (Yr 1) = ~720.000.

P(Yr 2) = ([3,600,000 X 1.03] - [720,000 X LOS]) / (5-1)

P(Yr 2) = (3,708,000 - 756,000) / 4 = $738.000.

P(Yr 3) = ([3,708,000 X 1.03] - [{756,OOO + 738,OOO} X 1.05]) / (5-2)

P(Yr 3) = (3,819,240 - 1,568,700) / 3 = ~750.180.

P(Yr 4) ([3,819,240 X 1.03] - [{1,568,700 + 750,180} X 1.05]) / (5 -3)

P(Yr 4) = (3,933,817 - 2,434,824) / 2 = $749,496.

P(Yr 5) = ([3,933,817 X 1.03] - [{2,434,824 + 749,496} X 1.05]) / (5-4)

P(Yr 5) = (4,051,832:- 3,343,536) / 1 = ~708,296.

P(Yr 6) = ([4,051,832 X 1.03] - [{3,343,536 + 708,296} X 1.05]) / 1

P(Yr 6) = (4,173,387 - 4,254,424) / 1 = lQ*,

• Because the earnings rate (5%) is greater than the inflation rate (3%), the Yr 6

computed annual payment amount due is negative; therefore, no annual trust payment

would be required after Year 5, Financing for the remaining CA planned remediation

activities after Yr 5 would come from distribution of the trust fund assets.

o

I

I~

HWrR 3-39 December 1, 1993 G