Removal Cost Policy and 

Operating Procedures 

(CERCLA) 

United States Coast Guard 

National Pollution Funds Center 

4200 Wilson Blvd., Suite 1000 

Arlington, VA 22203-1804 

5/24/96 

Chapter 3

3-87
CERCLA INCIDENT COST POLICY AND PROCEDURES FOR COAST GUARD FOSCs 

CG FOSCs, operating under the National Contingency Plan, 40 CFR 300, Subpart E -

Hazardous Substance Response, have access to SUPERFUND/CERCLA Fund on a 

reimbursable basis when responding to a hazardous substance incident. EPA annually 

provides to the CG NPFC an Inter-Agency Agreement (IAG), which supplies limited funding 

for CG FOSC hazardous substance removals in the coastal zone. Under an instrument of 

Redelegation between the Coast Guard and EPA, the Coast Guard does not perform remedial 

actions under CERCLA/SARA in the coastal zone. Rather, EPA Remedial Project Managers 

perform these. 

Fund Access 

CG FOSCs shall contact the NPFC and follow the procedures for access to the CERCLA 

fund when responding to a hazardous substance incident. 

ACTIONS THAT CAN BE FUNDED UNDER CERCLA 

The NCP, Subpart E, Sections 400, 405, 410, and 415 lay out a wide range of actions which 

CG FOSCs may take when responding to a CERCLA incident. Any action consistent with 

this Subpart of the NCP can be funded under CERCLA. In addition, action taken under 

Section 104(b) of CERCLA and emergency assistance under the Disaster Relief Act of 1974 

(Stafford Act) may be funded. Finally, CERCLA may fund enforcement activities related to 

hazardous substance responses. However, CG FOSCs are cautioned that CERCLA, unlike 

the OSLTF, does not contain provisions for paying claims to injured third parties, nor does 

EPA authorize funding via the CG to Natural Resource Trustees conducting Natural 

Resource Damage Assessments. 

FUNDING OTHER AGENCIES SUPPORTING THE FOSC 

As when responding to oil incidents, the FOSC is encouraged to utilize other agencies and 

participants within the National Response System. FOSCs may fund these authorized 

activities using PRFAs and other incident specific funding tools that cite the CERCLA 

reimbursable funds provided to the FOSC by the NPFC. Some federal agencies receive 

funding directly from EPA for certain case specific activity. The FOSC should advise the 

NFPC case officer of any PRFAs issued to federal agencies to ensure that the CG is not 

issuing duplicate funding. 

FUND MANAGEMEENT DURING THE RESPONSE 

Ceiling Management and Obligation Log 

The FOSC must always know the current financial status of a response. On large, complex 

cases the FOSC should compare the authorized ceiling against cumulative obligations daily. 

For other cases, this must be done for each POLREP. The FOSC must maintain a running 

Chapter 3 3-88 CHANGE 6 
log of obligations issued against the ceiling, and adjust the resulting ceiling balance 

accordingly. This ensures that the FOSC does not commit more funds than are available 

against the ceiling authorized by the District or the NPFC. An obligation log (also known as 

a Document Control Number Log) is required by the Coast Guard for financial management 

of all funds. 

Use of LUFS 

Units that are LUFS certified shall use LUFS when processing purchases and all other 

obligations aid for CERCLA reimbursable funds. Enter contracts, purchase orders, PRFAs, 

cash purchases, TONOS, etc., in LUFS. Take care to avoid entering unit AFC-30 purchases 

against the CPN, or incident purchases against the unit's AFC-30 funds. When more than 

one LUFS terminal is used on a spill (i.e., MSO and MLC(fcp), each LUFS location will 

generate its own DCN log. The FOSC financial staff must then collect the data from each 

log. Using LUFS facilitates keeping a Document Control Number (DCN) log. If LUFS is 

not used, then the unit must establish and maintain a "purchases" DCN log for the incident. 

Maximum Fund Limits 

1) CG FOSCs may not obligate more than $250,000 for an incident without an approved Action 

Memorandum. (See Paragraph 6.) 

2) CERCLA limits removal actions to no more than $2,000,000 or 12 months' duration. EPA may 

grant incident specific waivers to this requirement. 

SPECIAL FOSC REQUIREMENTS FOR CERCLA INCIDENTS 

Finding of Imminent and Substantial Endangerment 

The CG/EPA Memoranda of Understanding and its resulting funding agreement place special 

requirements on the FOSC. If a response requires less than $250,000 in funding, the FOSC must 

document a finding of imminent and substantial endangerment. This finding may be included in the 

situation description section of POLREP One, and at a minimum must include: 

1) the hazardous substance(s), pollutant(s), or contaminant(s) involved; 

2) description of what is affected or threatened (people, animals, crops, drinking water, etc.); 

3) a statement indicating that this situation presents an imminent and substantial threat to public health, 

welfare, or the environment; 

4) description of the response action necessary to neutralize the threat. 

Action Memorandum 

Coast Guard FOSCs are required to prepare an Action Memorandum whenever the removal ceiling 

exceeds $250,000. 

1) An Action Memorandum is a standard EPA document used in managing Superfund. Detailed 

instructions are contained in EPA publication, 0SWER DIRECTIVE 9360.3-01, Superfund 

Removal Procedures. A copy of this directive is found at Chapter 3, Subtab "Action Memo 

Guidance". If necessary, NPFC(cf) can provide a copy. Use the model Action Memorandum to 

define the substance of the memorandum, skipping references and sections specific to EPA. 

Chapter 3 3-89 CHANGE 6 
2) Action Memorandums shall be prepared by the FOSC and forwarded via the chain of command 

to Commandant (G-MRO). The FOSC shall concurrently provide a copy of the Action 

Memorandum and subsequent endorsements to the NPFC. 

3) The NPFC and COMDT (G-MRO) will coordinate approval of the Action Memorandum and any 

funding issues, including IAG Amendments, that accompany it. 

4) When the CG has sufficient funds to cover the ceiling and additional funding is not required from 

EPA, COMDT (G-MRO) will approve the Action Memorandum, advise NPFC, and forward the 

Action Memorandum to EPA/ERD prior to the CG FOSC obligating more than $250,000. 

5) When NPFC advises COMDT (G-MRO) that additional funding is required from EPA, COMDT 

(G-MEP) will forward the draft Action Memorandum to EPA/ERD for review and timely 

comment. The NPFC will coordinate the IAG Amendment that provides the additional 

funding with EPA/ERD. Upon concurrence by EPA/ERD with the draft Action 

Memorandum and the IAG increase, COMDT (G-MRO) will approve the Action 

Memorandum and NPFC will increase the incident ceiling to the approved amount. 

6) When a CG FOSC needs to act immediately while an Action Memorandum is being 

prepared, advise the NPFC. EPA/ERD may extend an oral commitment of funding 

and/or permission for the FOSC to exceed the $250,000 obligation limit. 

Resource Documentation Requirements 

CG FOSCs shall follow the procedures of the NPFC Resource Documentation TOPs for all 

CERCLA incidents. The forms are equally applicable to CERCLA funded incidents. CG 

FOSCs must be guided by the fact that all CERCLA costs are reimbursable in nature. The 

Coast Guard pays them initially, and then must bill EPA for replenishment of the funds. 

Costs that are not adequately documented and reported to the NPFC, and therefore cannot be 

billed to EPA, must be paid by the Coast Guard from existing budgeted operating funds. 

1) Within 30 days of the completion of a CERCLA response, CG FOSCs shall submit the 

Cost Summary Report required by the NPFC Resource Documentation TOPs. 

2) Units shall retain all records associated with a CERCLA response for 10 years following 

submission of the Cost Summary Report to the NPFC. 

Chapter 3 3-90 CHANGE 6 
Chapter 3: Removal Actions: Oil and Hazardous Substances

Chapter 3 1 Enclosure (1) to CERCLA Removal TOPs

NATIONAL STRIKE FORCE (NSF) GUIDANCE ON

CERCLA RESPONSES WHEN SUPPORTING EPA

OSCS

The NSF, when called upon as a special force to assist an EPA OSC on a CERCLA case, operates 

using reimbursable funding authorized by the EPA's OSC and their respective Region, provided to the 

Coast Guard in an Inter-Agency Agreement (IAG) negotiated between the EPA Region and the 

NPFC. hese IAGs may be either incident specific or "blanket" for a set period of time, usually one 

year. 

Funding 

procedures 

Financial

procedures 

Response 

documentation 

and financial

close-out 

 

Strike Teams or PIAT, upon receipt of an EPA OSC request and after 

determining that the strike team will respond, are authorized to issue a 

locally generated CERCLA Project Number (CPN) and associated 

ceiling. The Strike Team will promptly advise NPFC via the Strike

Team Launch Message that the CPN has been issued and the amount of 

ceiling the EPA FOSC has authorized. f the Strike Team must obligate 

funds in advance of the launch message being sent, the Strike Team will 

notify the NPFC by message and request activation of the CPN in the 

Coast Guard accounting system. 

NPFC(cf), upon receipt of a strike team request, will promptly verify the 

availability of funds. If funds are not available, the NPFC will 

immediately initiate negotiations with the respective EPA Region to 

ensure funds are made available. er, the Strike Team is 

authorized to continue the response while those negotiations proceed, 

unless the NPFC specifically directs the Strike Team that funds are not 

available and the CG actions in support of the EPA FOSC must be paid 

for in some other way.

Strike teams shall not request CPNs and ceilings from the NFPC when 

they are supporting a CG OSC on a CERCLA response. They shall seek

funding from the respective CG OSC, and use the CERCLA accounting

string assigned to the CG OSC by the NPFC. 

Strike Teams/PIAT shall use LUFS to record appropriate obligations and 

expenditures when using CERCLA reimbursable funds on a response. 

Strike Teams/ PIAT shall follow the NPFC Resource Documentation 

TOPs in documenting the daily cost of CG personnel, equipment, and 

other CG provided services (e.g.: MSL) used during a response. If the 

EPA OSC is using EPA's RCMS system and recording these costs in 

RCMS, then RCMS printouts, signed by the EPA OSC, are acceptable 

alternative documentation. e Teams shall retain supporting

documentation for a period of 10 years from the conclusion of the 

response. 

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Chapter 3: Removal Actions: Oil and Hazardous Substances

Chapter 3 2 Enclosure (1) to CERCLA Removal TOPs

Strike Teams/PIAT shall ent obligations and resulting

expenditures using LUFS. NFPC(cf) will provide Unbilled Expenditure 

Reports to allow the strike team to compare local records against official 

DAFIS records. nce the Strike Team has corrected all discrepancies, 

including submitting PES error reports when necessary, the Strike Team

may endorse Unbilled Expenditure Reports FPC(cf). 

This will serve as adequate documentation of all spending under the 

respective CPN. e Teams shall retain supporting documentation 

(purchase orders, travel claims, etc.) for a period of 10 years from the 

conclusion of the response. 

When the response has concluded, or when extended operations last 

more than 6 months, the Coast Guard will bill EPA under the IAG for the 

costs incurred to date. he NPFC is responsible for compiling the bill 

and directing FINCEN to bill EPA. The Strike Team is responsible for 

providing NPFC the cost information supporting the bill. 

For an interim bill, the NPFC will coordinate with the respective strike

team a timetable for the strike team to submit cost documentation to the 

NFPC. 

Within 90 days of the conclusion of any Strike Team support to an EPA 

OSC under CERCLA, the strike team shall provide a cost summary

report to the NPFC for the response. The cost summary report shall have 

the format as specified in the NPFC Resource Documentation TOPs. 

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