Cooperative Agreements and Superfund State Contracts for Superfund Response Actions, 24496-24522 [E7-7990]

Agencies

• ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 72, Number 84 (Wednesday, May 2, 2007)]
[Rules and Regulations]
[Pages 24496-24522]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-7990]



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Part V





Environmental Protection Agency





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40 CFR Parts 9 and 35



 Cooperative Agreements and Superfund State Contracts for Superfund 
Response Actions; Final Rule

Federal Register / Vol. 72, No. 84 / Wednesday, May 2, 2007 / Rules 
and Regulations

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 9 and 35

[FRL-8306-2]
RIN 2050-AE62


Cooperative Agreements and Superfund State Contracts for 
Superfund Response Actions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This final rule amends the regulation for Superfund 
Cooperative Agreements and Superfund State Contracts. The revisions to 
the regulation: Incorporate EPA policy changes since 1990 that impact 
this regulation; reduce the burden placed by this regulation on 
Cooperative Agreement recipients and parties to Superfund State 
Contracts; increase reliance on the Federal Government's uniform 
administrative requirements for grants and Cooperative Agreements to 
State and local governments, wherever possible; authorize procedures 
that required deviations, on multiple occasions, under the existing 
regulation; expressly authorize previous program initiatives that were 
proven successful on a pilot basis; provide additional regulatory 
flexibility without negatively impacting cost recovery actions; update 
cross-references to other regulations that have changed or been 
removed; and eliminate references to obsolete forms. The revisions 
affect States, Indian Tribes, intertribal consortia, and political 
subdivisions. The revisions will improve the administration and 
effectiveness of Superfund Cooperative Agreements and Superfund State 
Contracts.

DATES: This rule is effective July 2, 2007.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-HQ-SFUND-2006-0498. All documents in the docket are listed on 
the www.regulations.gov Web site. Although listed in the index, some 
information is not publicly available, e.g., confidential business 
information (CBI) or other information whose disclosure is restricted 
by statute. Certain other material, such as copyrighted material, is 
not placed on the Internet and will be publicly available only in hard 
copy form. Publicly available docket materials are available either 
electronically through www.regulations.gov or in hard copy at the 
Superfund Docket, EPA/DC, EPA West, 1301 Constitution Ave., NW., 
Washington, DC.


    Note: The EPA Docket Center suffered damage due to flooding 
during the last week of June 2006. The Docket Center is continuing 
to operate. However, during the cleanup, there will be temporary 
changes to Docket Center telephone numbers, addresses, and hours of 
operation for people who wish to visit the Public Reading Room to 
view documents. Consult EPA's Federal Register notice at 71 FR 38147 
(July 5, 2006) or the EPA Web site at https://www.epa.gov/epahome/dockets.htm for current information on docket status, locations and 
telephone numbers.


FOR FURTHER INFORMATION CONTACT: Angelo Carasea, Office of Solid Waste 
and Emergency Response, Office of Superfund Remediation and Technology 
Innovation, (5204P), Environmental Protection Agency, 1200 Pennsylvania 
Ave., NW., Washington, DC 20460; telephone number: (703) 603-8828, fax 
number: (703) 603-9112, e-mail address: carasea.angelo@epa.gov.

SUPPLEMENTARY INFORMATION:

I. Statutory Authority
II. Applicability
III. Background
IV. Description of Key Changes
V. Section-by-Section Analysis
VI. Statutory and Executive Order Reviews

Statutory Authority

    This rule is issued under section 104(a)-(j) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9601 et seq.) as amended (hereinafter CERCLA).

II. Applicability

    The final regulation requirements shall apply to all new 
Cooperative Agreements and Superfund State Contracts, funded under 
CERCLA, which EPA signs on or after the effective date of this 
regulation. EPA may agree to amend existing Cooperative Agreements or 
Superfund State Contracts to make the final regulation requirements 
applicable to work performed on and after the date EPA signs the 
amendment.

III. Background

    CERCLA launched the nation's first centralized and substantial 
commitment to clean up hazardous substance sites. CERCLA, or Superfund, 
provided Federal authority and resources to respond directly to 
releases (or threatened releases) of hazardous substances, pollutants, 
or contaminants that could endanger human health or the environment. 
The law also authorized enforcement action and cost recovery from those 
responsible for a release of a hazardous substance.
    This regulation authorizes two types of Superfund response 
agreements for State, Tribal (including intertribal consortium) and 
political subdivision participation in CERCLA implementation: 
Cooperative Agreements and Superfund State Contracts. These agreements 
ensure State and Tribal involvement, consistent with section 121 of 
CERCLA, 42 U.S.C. 9621 (hereinafter section 121), and section 126 of 
CERCLA, 42 U.S.C. 9626, (hereinafter section 126) and are used to 
obtain State assurances required under section 104 of CERCLA, 42 U.S.C. 
9604, (hereinafter section 104) before EPA begins a remedial action.
    EPA uses Cooperative Agreements to transfer funds to a State, 
political subdivision, or Indian Tribe that assumes responsibility as 
the lead or support agency for Superfund responses. Core Program 
Cooperative Agreements are used to fund non-site-specific activities 
that support a State or Indian Tribe's involvement in CERCLA responses.
    A Superfund State Contract is used to document a State's CERCLA 
section 104 assurances when either EPA or a political subdivision has 
the lead role in the implementation of a remedial action. The 
regulation is revised to authorize, but not require, a three-party 
Superfund State Contract whenever a political subdivision takes the 
lead for a remedial action.
    The role of States, Indian Tribes, and political subdivisions in 
Superfund has evolved substantially since 1990 when the original 40 CFR 
part 35 subpart O regulation was promulgated. The recipients' cleanup 
programs have matured and become more sophisticated. In addition, EPA 
has actively sought to fulfill CERCLA's mandate in sections 121 and 126 
to provide States and Indian Tribes a ``substantial and meaningful 
involvement'' in Superfund by providing Core Program funding for the 
development of State and Tribal infrastructure. The current subpart O 
imposes more restrictive requirements on recipients than 40 CFR part 31 
because, in 1990, EPA believed these requirements were necessary for 
enforcement and cost recovery purposes. With the maturing of State and 
Tribal programs, some of these added burdens have been judged to be 
unnecessary. In the amended subpart O, EPA allows recipients to follow 
the less burdensome 40 CFR part 31 requirements, wherever this is 
possible, without compromising cost recovery or other Superfund-
specific requirements.

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For example, with respect to procurement procedures, the amended 
subpart O eliminates the burdensome requirement for grantees to certify 
that their procurement systems meet the requirements of this subpart. 
The final regulation retains current requirements for awarding funds 
and tracking costs by site, activity, and operable unit, when 
appropriate, to ensure adequate documentation of costs. Retention of 
such documentation requirements will meet Superfund cost recovery 
requirements.

IV. Description of Key Changes

    EPA made limited revisions to certain sections of the regulation. 
The following is a brief description of the key changes.

A. Combining Certain Activities Into a Single Cooperative Agreement

    This revision enables EPA to award a single Cooperative Agreement 
for a single activity or multiple activities; a single activity at 
multiple sites; and multiple activities at multiple sites. For example, 
EPA may award a single Cooperative Agreement for Core Program, pre-
remedial and support agency activities. EPA will not award or amend a 
Cooperative Agreement to a political subdivision to conduct multiple 
activities at multiple sites. The revised regulation requires a single 
Cooperative Agreement for each State, political subdivision or Indian 
Tribe-lead remedial action and certain removal actions.

B. Core Program

    This revision provides for the maintenance of program elements 
previously developed using Core Program funding; however, EPA funding 
of the recipients' Core Program activities is dependent on the 
availability of EPA funds. Also this revision does not require Indian 
Tribes, including intertribal consortia, to meet the Core Program match 
requirements.

C. Indian Tribes

    In light of the many and varied interests that Indian Tribes have 
in the Superfund cleanup process, EPA is reducing unnecessary obstacles 
to Tribal involvement. When EPA promulgated the current regulation, it 
made a policy decision to require Indian Tribes to meet the criteria at 
40 CFR 300.515(b), which include establishing jurisdiction under 40 CFR 
300.515(b)(3), to be eligible for any Cooperative Agreement under this 
subpart. The revised regulation eliminates the requirement for 
demonstrating jurisdiction for all Tribal Core Program and most Tribal 
support agency agreements. To reflect the reduced emphasis on 
jurisdiction and to make the regulation's language more precise, the 
regulation is modified in several appropriate places to delete 
references to Tribal ``jurisdiction,'' and refer instead to a Tribal 
``area of Indian country.'' The regulation also removes cost share 
requirements for Core Program and support agency Cooperative 
Agreements. As a result, Indian Tribes have no cost share requirements 
under the revised regulation. Finally, an Indian Tribe will not need to 
acquire an interest in or accept transfer of an interest in real 
property acquired with CERCLA funds. This is not required under CERCLA 
section 104(j).

D. Intertribal Consortium

    Under the revised regulation, an intertribal consortium can enter 
into a Cooperative Agreement with EPA. This change implements the 
Federal Register notice, ``Update to EPA Policy On Certain Grants to 
Intertribal Consortia,'' (See, 67 FR 67181 (November 4, 2002)). An 
intertribal consortium must meet the same subpart O requirements for 
applying for and administering a Cooperative Agreement as an Indian 
Tribe.

E. Progress Reports

    The revised subpart O relaxes current reporting requirements that 
mandate quarterly reports. In the revised regulation, the EPA award 
official may specify that progress reports be submitted annually, semi-
annually, or quarterly.

F. Five-year Review

    Participation in five-year reviews of the continuing effectiveness 
of a remedial action is added as an eligible support agency activity.

G. Cost Share for the Support Agency

    The 10 percent cost share requirement for remedial action support 
agency activities at EPA-lead sites is eliminated.

H. Program Income

    With respect to program income, the revised regulation adds the 
following: ``Recoveries of Federal cost share amounts are not program 
income, and whether such recoveries are received before or after 
expiration of the Cooperative Agreement, must be reimbursed promptly to 
EPA.''

I. Credit Verification Procedures

    EPA may use other financial reviews in lieu of an audit to verify 
expenditures submissions.

J. Excess Cash Cost Share Contributions/Over Match Revisions

    The recipient may direct EPA to return the excess funds or to use 
the over match at one site to meet the cost share obligations at 
another site.

K. Thresholds for Force Accounts, Small Purchases and Cost Analysis

    Force accounts, small purchases, and cost analysis dollar amount 
thresholds are linked to the simplified acquisition threshold, as 
defined in the Office of Federal Procurement Policy Act (41 U.S.C. 403, 
Definitions). The dollar amount for the simplified acquisition 
threshold is currently set at $100,000.

L. Unalterable Electronic Format

    An unalterable electronic format may be substituted for original 
records if it is performed in accordance with the technical regulations 
concerning Federal Government records and EPA record management 
requirements. The unalterable electronic format requirement replaces 
the microform requirement.

M. Three-Party Superfund State Contract

    Under the revised regulation, the three-party Superfund State 
Contract is optional rather than mandatory. EPA has found that it is 
sometimes advantageous for the Superfund State Contract to be signed 
only by the State and EPA to obtain needed State CERCLA assurances, and 
to rely on a separate EPA Cooperative Agreement with a political 
subdivision. This revised regulation adds the requirement that EPA 
obtain State concurrence before awarding a Cooperative Agreement for 
remedial action to a political subdivision. EPA is making this change 
because EPA believes that it is important to maintain close 
communication and coordination with the State in all CERCLA responses.

N. Obsolete References

    This revision updates cross-references to other regulations that 
have changed or been removed, and eliminates references to obsolete 
forms.

V. Section-by-Section Analysis

Section 35.6000 Authority

    This section remains the same, except for a more specific citing of 
CERCLA.

 Section 35.6005 Purpose and Scope

    In paragraph (a), the word ``CERCLA-funded'', is deleted from the 
phrase, ``for administering CERCLA-funded Cooperative Agreements,'' and 
a reference to CERCLA section 104(d)(1) is added after this phrase.

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    Paragraph (b) is eliminated because it cites program authorities, 
which are not within the scope of CERCLA section 104 (a) through (j). 
The remaining paragraphs are resequenced to reflect deletion of 
paragraph (b).

Section 35.6010 Indian Tribe and Intertribal Consortium Eligibility

    This section's title is changed from ``Eligibility,'' to ``Indian 
Tribe and Intertribal Consortium Eligibility.'' The words ``States'' 
and ``political subdivisions'' are removed from this section, leaving 
text that is devoted exclusively to Indian Tribe eligibility. The 
revised section adds, in paragraph (a), that an Indian Tribe is not 
required to demonstrate jurisdiction under 40 CFR 300.515(b)(3) of the 
National Oil and Hazardous Substances Pollution Contingency Plan 
(National Contingency Plan or NCP) to be eligible for Core Program 
Cooperative Agreements, or those support agency Cooperative Agreements 
for which jurisdiction is not needed for the Tribe to carry out the 
support agency activities of the work plan. Finally, the revised 
section contains a new paragraph (c), which states that an intertribal 
consortium is eligible only if each consortium member is an eligible 
Tribe and that all members authorize the consortium to apply for and 
receive assistance.

Section 35.6015 Definitions

    The following changes are made in this section.
    The definition of CERCLA is shortened to refer only to the United 
States Code citation.
    Under the Core Program Cooperative Agreement definition, the word 
``support'' is replaced with the words ``develop and maintain''. This 
change clarifies that the Core Program funding can be made available 
for continuing program activities and operations. Also, the revised 
regulation corrects the omission of Indian Tribes from the definition 
in the previous regulation.
    The definition of ``Indian Tribe'' is revised by adding a sentence 
stating that the term also includes an intertribal consortium 
consisting of two or more federally recognized Tribes.
    The National Priorities List definition is revised to conform it 
with the definition in the NCP at 40 CFR 300.5.
    The revised regulation defines two additional terms: (a) 
Intertribal consortium and (b) simplified acquisition threshold. The 
intertribal consortium definition is based on the definition found in 
EPA's revised policy concerning certain grants to intertribal consortia 
(See, 67 FR 67181 (November 4, 2002)). The simplified acquisition 
threshold definition is taken from 41 U.S.C. 403, Definitions.
    The revised regulation deletes the definition for ``excess 
property.'' This term is not used in the regulation.

Section 35.6020 Requirements for Both Applicants and Recipients

    The text in Sec.  35.6020, ``Other statutory provisions'' is 
removed. The text in Sec.  35.6560 is revised to provide updated 
references to EPA's codifications of the Government-wide debarment and 
suspension rules, and drug-free workplace rules; the revised section is 
retitled, ``Requirements for Both Applicants and Recipients,'' and 
renumbered as Sec.  35.6020. Conforming amendments are made to cross-
references appearing in the revised regulation at Sec. Sec.  
35.6550(a)(6) and 35.6610(a).

Section 35.6055 State-Lead Pre-Remedial Cooperative Agreements

    In paragraph (a)(2)(i), the phrase ``project officer'' is changed 
to ``EPA project officer.''
    Paragraphs (a)(3) to (a)(6) are deleted and replaced with a new 
paragraph (a)(3), which states that the applicant must submit all 
applicable forms and information authorized by 40 CFR 31.10.

Section 35.6060 Political Subdivision-Lead Pre-Remedial Cooperative 
Agreements

    Paragraphs (c) and (d) are deleted. A three-party Superfund State 
Contract is authorized, but not required under Sec.  35.6800.

Section 35.6105 State-Lead Remedial Cooperative Agreements

    The following changes are made in this section.
    In paragraph (a), a new second sentence is added to indicate that 
applications for additional funding need only include the revised 
pages. This change is consistent with 40 CFR 31.10(b)(4).
    Paragraphs (a)(3) to (a)(6) are deleted and replaced with a new 
paragraph (a)(3) that requires the applicant to submit all applicable 
forms and information authorized by 40 CFR 31.10.
    Several editorial changes are made to paragraphs (b)(1) and (b)(2) 
to conform the text to CERCLA section 104(c)(3), and to add a reference 
to 40 CFR 300.510(c)(1).
    New text is added to paragraph (b)(5) to make clear that a State 
must provide the real property assurance even if the State transfers 
its interest to a third party or political subdivision. In addition, if 
the political subdivision defaults, the State will accept transfer of 
the interest. Finally, the new text provides that if the State or 
political subdivision disposes of the transferred real property, it 
shall comply with the requirements for real property in 40 CFR 
31.31(c)(2).

Section 35.6110 Indian Tribe-Lead Remedial Cooperative Agreements

    The following changes are made in this section.
    In paragraph (a), the phrase, ``and, if appropriate, Sec.  
35.6105(b)(5),'' is deleted. Also, paragraph (b)(2) is deleted. An 
Indian Tribe will not be required to assure EPA that it will take title 
to, acquire interest in, or accept transfer of an interest in real 
property acquired with CERCLA funds. Such an assurance is not required 
by CERCLA section 104.
    Paragraph (b)(3) is resequenced to (b)(2). The phrase ``out of 
jurisdiction'' is replaced with the phrase, ``out-of-an-Indian-Tribal-
area-of-Indian-country''.
    A new paragraph (b)(3) is added to make clear that CERCLA does not 
require Indian Tribes to share in the cost of CERCLA-funded remedial 
actions.

Section 35.6115 Political Subdivision-Lead Remedial Cooperative 
Agreement

    The sentences under paragraph (a) are deleted and replaced with the 
following sentences: ``General. If the State concurs, EPA may allow a 
political subdivision with the necessary capabilities and 
jurisdictional authority to conduct remedial response activities at a 
site. EPA will award the political subdivision a Cooperative Agreement 
to conduct remedial response and enter into a parallel Superfund State 
Contract with the State if required (See Sec.  35.6800, when a 
Superfund State Contract is required). The political subdivision may 
also be a signatory to the Superfund State Contract. The political 
subdivision must submit to the State a copy of all reports provided to 
EPA.''
    Paragraph (b) is deleted.
    The changes to paragraphs (a) and (b) are made because a three-
party Superfund State Contract is authorized, but it is not required 
under Sec.  35.6800.
    Paragraph (c) is resequenced to paragraph (b).

Section 35.6120 Notification of the Out-of-State or Out-of-an-Indian-
Tribal-Area-of-Indian-Country Transfer of CERCLA Waste

    The title of Sec.  35.6120 is changed. The phrase ``out-of-
jurisdiction'' is replaced with the phrase, ``Out-of-an-Indian-Tribal-
Area-of-Indian-Country.'' A corresponding change is made in

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paragraph (a). In paragraph (b)(2), the phrase, ``The appropriate 
Indian Tribal official, who has jurisdictional authority in the area 
where the waste management facility is located,'' is replaced with the 
phrase, ``An appropriate official of an Indian Tribe in whose area of 
Indian country the waste management facility is located''.

Section 35.6205 Removal Cooperative Agreements

    In paragraph (e), the word, ``jurisdiction,'' is replaced with the 
phrase, ``area of Indian country''.

Section 35.6215 Eligibility for Core Program Cooperative Agreements

    In paragraph (a), the word ``support'' is replaced with the phrase 
``develop and maintain.'' This change clarifies that the Core Program 
funding can be made available for continuing program activities and 
operations.

Section 35.6225 Activities Eligible for Funding Under Core Program 
Cooperative Agreements

    In paragraph (a) and paragraph (a)(5), the word ``support'' is 
replaced with the phrase ``develop and maintain''. This change 
clarifies that the Core Program funding can be made available for 
continuing program activities and operations.

Section 35.6230 Application Requirements

    The text in paragraph (d) is replaced with a cross-reference to 40 
CFR 31.10.

Section 35.6235 Cost Sharing

    Indian Tribes are not required to provide cost share for Core 
Program activities. This change supports EPA's objectives under EPA 
Policy for the Administration of Environmental Programs on Indian 
Reservations (located at Web site: https://www.epa.gov/indian/pdfs/indian-policy-leavitt-pr.pdf) to (a) take affirmative steps to 
encourage and assist Tribes in assuming regulatory and program 
management responsibilities for reservation lands, and (b) take 
appropriate steps to remove existing legal and procedural impediments 
to working directly with Tribal government programs. Further, the word 
``recipient'' is changed to ``State'' since only a State is required to 
provide cost share for Core Program activities.

Section 35.6245 Allowable Activities

    A sentence is added to clarify that a five-year review is an 
eligible support agency activity.

Section 35.6250 Support Agency Cooperative Agreement Requirements

    In paragraph (a), the citation to ``part 29'' is corrected to read 
``40 CFR part 29''. In the penultimate sentence of paragraph (a), the 
phrase ``with the exception of remedial action support agency 
activities, which require cost share and must be applied for within a 
site-specific budget,'' is deleted. The last sentence in this section 
is also deleted. States and Indian Tribes receiving a support agency 
Cooperative Agreement will no longer be required to develop an 
estimated budget for each remedial action site as this requirement was 
determined to be unnecessary and overly burdensome. However, State and 
Indian Tribe accounting systems must continue to track expenses by 
site, activity and operable unit as required in Sec.  35.6270.

Section 35.6255 Cost Sharing

    This section is deleted. EPA has eliminated the 10 percent cost 
share requirement for remedial action support agency activities at EPA-
lead sites because the costs of these activities are minimal. EPA will 
not agree to waive the cost share requirements under support agency 
Cooperative Agreements that were awarded before the effective date of 
this rule.

Section 35.6260 Combining Cooperative Agreement Sites and Activities.

    The current regulation describes specific types of Cooperative 
Agreements. This new section authorizes multiple activities at both 
single and multiple sites when the recipient demonstrates certain 
qualifications (i.e., administrative, technical, and financial 
management capabilities).
    EPA will not award or amend a Cooperative Agreement to a political 
subdivision to conduct multiple activities at multiple sites. The 
revised regulation requires a single Cooperative Agreement for each 
remedial action and eligible removal action (i.e., a removal action 
that exceeds the statutory monetary ceiling or whenever a consistency 
waiver is likely to be sought). This approach (e.g., the combining of 
Core, pre-remedial, and support agency activities under a single 
Cooperative Agreement) has been used successfully for several years 
under EPA's ``Block Funding Administrative Reform.''

Section 35.6270 Standards for Financial Management Systems

    In paragraph (a)(5), the two sentences are deleted and replaced 
with the following: ``All support agreements will be assigned a single 
Superfund activity code designated specifically for support agency 
activities. All support agency costs, however, must be documented site 
specifically in accordance with the terms and conditions specified in 
the Cooperative Agreement.''

Section 35.6280 Payments

    Paragraph (a)(2) is revised to cross-reference the identical 
requirements in 40 CFR 31.21(i), ``Interest earned on advances.'' The 
only new effect of this revision is that recipients will be allowed to 
keep up to $100 per year for administrative expenses. See the last 
sentence of 40 CFR 31.21(i).

Section 35.6285 Recipient Payment of Response Costs

    Changes to this section include:
    In paragraph (c)(1), the phrase ``as defined in CERCLA section 
101(24), that are consistent with the permanent remedy at the site,'' 
is added after the phrase ``remedial action'' to clarify the scope of 
activities that may be eligible for a State credit.
    In paragraph (c)(1)(ii), the text is revised to indicate that after 
a site is listed on the NPL, the State may be eligible for credit only 
if the State initiated the remedial action after obtaining EPA's 
written approval.
    In paragraph (c)(2), the phrase ``Expenditures incurred before a 
site is listed on the NPL'' is deleted because the credit submission 
requirements are the same whether the expenses were incurred before or 
after listing.
    Paragraph (c)(2)(ii) is deleted because the requirement is 
addressed under (c)(1)(ii).
    The title of paragraph (c)(4) is changed from ``Credit 
verification'' to ``Credit verification procedures.'' To ensure a 
timely review of State credits, the regulation is modified to permit a 
financial review as an alternative to an audit.
    The title of paragraph (d) is changed from ``Over match'' to 
``Excess cash cost share contributions/over match''. The revised 
paragraph gives the State the option of directing EPA to return the 
excess funds or to use the over match at one site to meet the cost 
share obligations at another site.

Section 35.6290 Program Income

    A new sentence is added that states, ``Recoveries of Federal cost 
share amounts are not program income, and whether such recoveries are 
received before or after expiration of the Cooperative Agreement, must 
be reimbursed promptly to EPA.''

[[Page 24500]]

Section 35.6305 Obtaining Supplies

    In the second sentence, the phrase, ``in the above listed 
sections'', is replaced with, ``Sec. Sec.  35.6300, 35.6315(b), 35.6325 
through 35.6340, and 35.6350''.

Section 35.6400 Acquisition and Transfer of Interest

    The following changes are made under paragraph (a)(2):
    In the first sentence, the phrase, ``or Indian Tribes to the extent 
of its legal authority,'' is deleted. In the second sentence, the 
phrase, ``and Indian Tribe,'' and the phrase, ``and 35.6110(b)(2) 
respectively,'' are deleted. CERCLA section 104(j) does not require an 
Indian Tribe to provide assurances for real property.
    In the first sentence, the phrase ``of the NCP'' is appended to the 
citation: 40 CFR 300.510(f).

Section 35.6500 General Requirements

    Under paragraph (b), the ``$25,000'' limit is changed to ``the 
simplified acquisition threshold.''

Section 35.6550 Procurement System Standards

    Paragraphs (a)(1) through (a)(3) are replaced with a reference to 
40 CFR 31.36(a), and for States, a list of the eight additional subpart 
O procurement paragraphs and sections with which a State recipient must 
comply. The last sentence of this revised paragraph lists the 
procurement requirements for political subdivisions and Indian Tribes.
    Paragraphs (a)(4) through (a)(12) are resequenced (a)(2) through 
(a)(10).

Section 35.6555 Competition

    Paragraph (b)(2) is revised to read: ``Any contract or subcontract 
awarded by an Indian Tribe or Indian intertribal consortium shall 
comply with the requirements of 40 CFR 31.38, `Indian Self 
Determination Act'.'' The latter regulation, added to 40 CFR part 31 on 
January 19, 2001 (66 FR 3794), requires Indian Tribes and consortia to 
provide, to the extent feasible, employment preferences and training 
opportunities to Indians in connection with the administration of 
contracts and subcontracts under Federal financial assistance. In 
addition, award preferences are to be provided for Indian organizations 
and Indian-owned economic enterprises.

Section 35.6560 Master List of Debarred, Suspended, and Voluntarily 
Excluded Persons.

    This section is removed. The text of the current Sec.  35.6560 is 
revised to provide updated references to EPA's codifications of the 
Government-wide debarment and suspension rules and drug-free workplace 
rules; the revised section is retitled, ``Requirements for both 
applicants and recipients'', and renumbered as Sec.  35.6020. 
Conforming amendments are made to cross-references appearing in 
Sec. Sec.  35.6550(a)(6) and 35.6610(a).

Section 35.6565 Procurement Methods

    In paragraph (a), the ``$25,000'' limit is changed to the 
``simplified acquisition threshold''.

Section 35.6585 Cost and Price Analysis

    In paragraph (a)(1), the ``$25,000'' limit is changed to the 
``simplified acquisition threshold''.

Section 35.6590 Bonding and Insurance

    Paragraph (b) is deleted because the Agency's comprehensive 
guidelines on CERCLA section 119(c) indemnification are set forth in 
``Superfund Response Action Contractor Indemnification,'' 58 FR 5972 
(January 25, 1993). These guidelines provide that, in general, the 
Agency will not offer to indemnify response action contractors.
    The current paragraph (c) is resequenced to paragraph (b).

Section 35.6595 Contract Provisions

    Paragraph (b)(1) is amended by deleting the reference to the 1975 
enactment of the Energy Policy Conservation Act and substituting a 
reference to the U.S. Department of Energy's regulations governing 
State energy conservation programs.
    Paragraph (b)(2), entitled ``Violating facilities'', of Sec.  
35.6595 is deleted because it refers to the Agency's former regulations 
on Clean Air Act and Clean Water Act disqualifications, which were 
codified at 40 CFR part 15. Those statutory disqualifications and the 
procedures for reinstatement have been governed, since November 26, 
2003 (68 FR 66544, 66620, 66622) by subpart J of 40 CFR part 32, 
``Government-wide Debarment and Suspension (Nonprocurement); and 
Statutory Disqualification Under the Clean Air Act and Clean Water 
Act.'' The 40 CFR part 32 regulations apply to all EPA covered non-
procurement transactions, including those under 40 CFR part 35 subpart 
O.
    Paragraph (b)(3) is resequenced to (b)(2). Paragraph (b)(4) is 
resequenced to paragraph (b)(3) and revised to read, ``The recipient 
must comply with the requirements of 40 CFR 31.36(i)(3) through (6).'' 
The cross-referenced part 31 provisions specify the identical equal 
employment opportunity and labor requirements prescribed in paragraph 
(b)(3). The only effect of this revision is to eliminate the 
requirement that recipients include a copy of the obsolete EPA Form 
5720-4 in each construction contract.
    Paragraph (c), containing a requirement that recipient contracts 
include the model clauses described in 40 CFR 33.1030 (1987), is 
removed because 40 CFR part 33, ``Procurement under Assistance 
Agreements,'' was removed in 1996 (61 FR 6067).

Section 35.6650 Progress Reports

    The section title is changed from ``Quarterly Progress Reports'' to 
``Progress Reports.''
    Paragraph (a) is revised to read, ``The recipient must submit 
progress reports as specified in the Cooperative Agreement. Progress 
reports will be required no more frequently than quarterly, and will be 
required at least annually. The reports shall be due within 30 days 
after the reporting period. The final progress report shall be due 90 
days after expiration or termination of the Cooperative Agreement.'' In 
paragraph (b), the word ``quarterly'' is deleted.

Section 35.6665 Procurement Report

    Paragraph (a) is removed. The Department of Labor reports are no 
longer used.

Section 35.6700 Project Records

    In paragraph (d)(ii)(2), the ``$25,000'' limit is changed to the 
``simplified acquisition threshold.''

Section 35.6705 Records Retention

    The title of paragraph (c) is changed from the current 
``Substitution of microform'' to ``Substitution of an unalterable 
electronic format.'' The first sentence of the revised paragraph (c) 
authorizes recipients to substitute original records with copies in an 
unalterable electronic format that is acceptable to EPA. The second 
sentence requires that such copies be produced in accordance with the 
Federal records requirements of 36 CFR parts 1220 through 1234 and with 
EPA records management requirements.

Section 35.6780 Closeout

    EPA has a continuing interest in the effectiveness of completed 
remedies. Therefore, paragraph (c) is added, which states, ``After 
closeout, EPA may monitor the recipient's compliance with the assurance 
to provide all future operation and maintenance as required under 
CERCLA section 104(c) and addressed in 40 CFR 300.510(c)(1) of the 
NCP.''

[[Page 24501]]

Section 35.6800 Superfund State Contract

    The title of this section is changed from ``General'' to 
``Superfund State Contract.'' The introductory paragraph is rewritten 
to clarify that the primary purpose of the Superfund State Contract 
(SSC) is to ensure State and Tribal involvement and to obtain State 
assurances before EPA can fund remedial actions pursuant to section 104 
of CERCLA. The SSC may also be utilized to document other response 
actions and third-party involvement.

Section 35.6805 Content of an SSC

    Several changes are made to this section.
    In paragraph (i)(1), the second sentence, ``The State's 
responsibility for operation and maintenance generally begins when EPA 
determines that the remedy is operational and functional or one year 
after construction completion, whichever is sooner (See, 40 CFR 
300.435(f)),'' is added to clarify when the State's responsibility for 
operation and maintenance begins.
    In paragraph (i)(4), the sentence, ``An Indian Tribe must provide 
assurances pursuant to Sec.  35.6100(b)(2),'' is deleted. Indian Tribes 
are not required to provide real property assurances under CERLCA 
section 104(j).
    In paragraph (j)(3), the phrase, ``Final payment must be made by 
completion of all activities in the site-specific Statement of Work,'' 
is replaced with the phrase, ``Upon completion of activities in the 
site-specific Statement of Work, EPA shall invoice the State for its 
final payment.''
    The title of paragraph (q) is changed from ``Joint inspection of 
the remedy'' to, ``Final inspection of remedy.'' The sentences under 
this paragraph are deleted and replaced with the sentence, ``The SSC 
must include a statement that following completion of the remedial 
action, the State and EPA shall jointly inspect the project to 
determine that the remedy is functioning properly and is performing as 
designed.''
    In paragraph (v), the phrase, ``out-of-Indian-Tribal 
jurisdiction,'' is replaced with the phrase, ``out-of-an-Indian-Tribal-
area-of-Indian-country.''

Section 35.6815 Administrative Requirements

    Under paragraph (a)(1), the sentence, ``The State or political 
subdivision must make payments during the course of the site-specific 
project and must complete payments by completion of activities in the 
site-specific Statement of Work,'' is deleted. The requirement is under 
Sec.  35.6805(j)(3). The sentence, ``See Sec.  35.6255 of this subpart 
for requirements concerning cost sharing under a support agency 
Cooperative Agreement,'' is deleted. Section 35.6255 is deleted in this 
revision.
    Under paragraph (c)(2), the word ``quarterly'' modifying ``progress 
report'' is deleted.

Section 35.6820 Conclusion of the SSC

    Paragraphs (a) through (c) are resequenced (a)(1) through (a)(3). 
In the revised paragraph (a)(3), the sentence ``undertake 
responsibility for O&M, and, if applicable, accept transfer in real 
property (See Sec.  35.6805(i)(4))'' is deleted and replaced with 
paragraph (a)(4), containing the language, ``Assume responsibility for 
all future operation and maintenance as required by CERCLA section 
104(c) and addressed in 40 CFR 300.510 (c)(1) of the NCP, and if 
applicable, accept transfer of any Federal interest in real property 
(See Sec.  35.6805(i)(4)).''
    A new paragraph (b) is added to this section that states, ``After 
the administrative conclusion of the Superfund State Contract, EPA may 
monitor the signatory's compliance with assurances to provide all 
future operation and maintenance as required by CERCLA section 104(c) 
and addressed in 40 CFR 300.510 (c)(1) of the NCP.''
    These changes are made to help ensure long-term requirements for 
operation and maintenance and certain institutional controls remain in 
effect even after the Superfund State Contract expires.

VI. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Reviews

    Under Executive Order (EO) 12866 (58 FR 51735, October 4, 1993), 
this action is a ``significant regulatory action.'' Accordingly, EPA 
submitted this action to the Office of Management and Budget (OMB) for 
review. Any changes made in response to OMB recommendations have been 
documented in the docket for this action.

B. Paperwork Reduction Act

    The Office of Management and Budget (OMB) has approved the 
information collection requirements contained in this rule under the 
provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and 
has assigned OMB control number 2050-0179.
    This ICR authorizes the collection of information under 40 CFR part 
35, subpart O, which establishes the administrative requirements for 
Cooperative Agreements funded under CERCLA for State, political 
subdivisions, and federally recognized Indian Tribal government 
response actions. This regulation also codifies the administrative 
requirements for Superfund State Contracts for non-State-lead remedial 
responses. This regulation includes only those provisions mandated by 
CERCLA, required by OMB Circulars, or added by EPA to ensure sound and 
effective financial assistance management. The information is collected 
from applicants and/or recipients of EPA assistance and is used to make 
awards, pay recipients, and collect information on how Federal funds 
are being spent. EPA requires this information to meet its Federal 
stewardship responsibilities. Recipient responses are required to 
obtain a benefit (Federal funds) under 40 CFR part 31, Uniform 
Administrative Requirements for Grants and Cooperative Agreements to 
State and Local Governments and under 40 CFR part 35, State and Local 
Assistance. This rule does not contain any collection of information 
requirements beyond those already approved. It is estimated there will 
be approximately 654 respondents, with an average hourly burden per 
response of 7.75 hours per response. This provides an estimated overall 
annual burden to State, local or Tribal governments of 5073 hours. 
There are no estimated capital or operations and maintenance costs 
associated with this grant rule. Burden means the total time, effort, 
or financial resources expended by persons to generate, maintain, 
retain, disclose or provide information to or for a Federal agency. 
This includes the time needed to review instructions; develop, acquire, 
install, and utilize technology and systems for the purposes of 
collecting, validating, and verifying information, processing and 
maintaining information, and disclosing and providing information; 
adjust the existing ways to comply with any previously applicable 
instructions and requirements; train personnel to be able to respond to 
a collection of information; search data sources; complete and review 
the collection of information; and transmit or otherwise disclose the 
information.
    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9. In addition, EPA is 
amending the table in 40 CFR part 9 of currently approved

[[Page 24502]]

OMB control numbers for various regulations to list the regulatory 
citations for the information requirements contained in this final 
rule.

C. Regulatory Flexibility Act

    Today's final rule is not subject to the Regulatory Flexibility Act 
(RFA), which generally requires an agency to prepare a regulatory 
flexibility analysis for any rule that will have a significant economic 
impact on a substantial number of small entities. The RFA applies only 
to rules subject to notice and comment rulemaking requirements under 
the Administrative Procedure Act (APA) or any other statute. This rule 
is not subject to notice and comment requirements under the APA or any 
other statute because this rule pertains to grants which the APA 
expressly exempts from notice and comment rulemaking requirements under 
5 U.S.C. 553(a)(2). Moreover, CERCLA also does not require EPA to issue 
a notice of proposed rulemaking prior to issuing this rule. The Agency 
has determined that this rule does not adversely impact small entities.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal Agencies to assess the 
effects of their regulatory actions on State, local, and Tribal 
governments and the private sector. Under section 202 of the UMRA, 
Federal agencies generally must prepare a written analysis, including a 
cost-benefit analysis, for proposed and final rules with ``Federal 
mandates'' that may result in expenditures to State, local and Tribal 
governments, in the aggregate, or to the private sector, of $100 
million or more in any one year. Moreover, section 205 allows Federal 
agencies to adopt an alternative other than the least costly, most 
cost-effective or least burdensome alternative if the Administrator 
publishes with the final rule an explanation why that alternative was 
not adopted. Before promulgating a rule for which a written statement 
is needed, section 205 of the UMRA requires Federal agencies to 
identify and consider a reasonable number of regulatory alternatives 
and adopt the least costly, most cost-effective, or least burdensome 
alternative that achieves the objectives of the rule. The provisions of 
section 205 do not apply when they are inconsistent with applicable 
law. Before a Federal agency establishes any regulatory requirements 
that may significantly or uniquely affect small governments, including 
Tribal governments, it must have developed, under section 203 of the 
UMRA, a small government agency plan. The plan must provide for 
notifying potentially affected small governments, enabling officials to 
have meaningful and timely input in the development of regulatory 
proposals, and informing, educating and advising small governments on 
compliance with the regulatory requirements.
    This final rule does not include Federal mandates that may result 
in expenditures of $100 million or more to State, local, or Tribal 
governments in the aggregate, because the UMRA generally excludes from 
the definition of ``Federal intergovernmental mandate'' duties that 
arise from participation in a voluntary Federal program. States are not 
legally required to have or maintain a CERCLA authorized program. 
Therefore, today's final rule is not subject to the requirements of 
sections 202 or 205 of UMRA. EPA has determined that this rule contains 
no regulatory requirements that might significantly or uniquely affect 
small governments, because participation by small governments in this 
program is voluntary and is funded by EPA.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires Federal agencies to develop an accountable process 
to ensure ``meaningful and timely input by State and local officials in 
the development of regulatory policies that have federalism 
implications.'' The Executive Order defines ``policies that have 
federalism implications'' to include regulations that have 
``substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government.'' This 
final rule does not have federalism implications. It does not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government, as 
specified in Executive Order 13132.
    This final rule mainly makes minor changes to the regulation, under 
which the program has been operating since June, 1990. Apart from the 
minor changes, this rule adds new provisions that increase State 
flexibility, so it does not have federalism implications as that phrase 
is defined for purposes of Executive Order 13132. Further, because this 
is a rule that primarily conditions the use of Federal assistance, it 
does not impose substantial direct compliance costs on States.
    EPA did consult with representatives of State governments in 
developing this rule. Specifically, State representatives have been 
participating members of the workgroup revising this rule throughout 
the entire process, and were given the opportunity to review and 
comment on drafts of this rule. Representatives from two States (Kansas 
and Illinois) were selected to participate in the work group meetings, 
and these States discussed rule options and draft rule language with 
EPA throughout the development of the rule. Also, the draft rule was 
provided to the Association of State and Territorial Solid Waste 
Management Officials.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by Tribal officials in the development of regulatory 
policies that have Tribal implications.'' Although this rule will have 
Tribal implications, it will not impose substantial direct compliance 
costs on Tribal governments, preempt Tribal law, or establish Federal 
standards. The Agency consulted with Tribes under its EPA Indian 
Policy, and in light of CERCLA sections 121 and 126 providing that 
Indian Tribes should have ``substantial and meaningful involvement'' in 
Superfund.
    EPA has consulted with Tribal officials early in the process of 
developing this regulation to permit them to have meaningful and timely 
input into its development. During the early deliberations on the 
revisions to this rule, a Tribal representative was actively involved 
in the regulatory workgroup, and helped identify issues of likely 
concern to Tribal governments. EPA, in turn, discussed those issues 
with Tribal representatives participating in a concurrent initiative to 
enhance the State and Tribal roles in Superfund. And the rule was 
informed to a large extent by the experiences of Tribes and EPA during 
16 years of experience working under the old regulation. Ultimately, 
the EPA regulatory workgroup used the knowledge gained from 
consultation and experience to identify and incorporate beneficial 
changes for Tribes into the regulation. The principal changes 
(discussed further in section IV), were (a) to waive the cost share 
requirement for Tribes receiving Core Program and support

[[Page 24503]]

agency Cooperative Agreement, (b) to eliminate requirements to show 
jurisdiction for all Core agreements and most support agency 
agreements, and (c) to include intertribal consortia as eligible 
entities to receive Cooperative Agreements. After drafting this 
regulation, EPA solicited input from all the federally recognized 
Indian Tribes and the National Tribal Environmental Council by mailing 
a summary explaining the Tribal portions of the revised subpart O 
regulation. Most recently, the Agency also discussed the proposed 
changes and solicited direct feedback from Indian Tribes at the 11th 
Annual Conference, ``Community Environmental Stewardship for the 
Future,'' sponsored by the Inter-Tribal Environmental Council (ITEC).
    As required by section 7(a), EPA's Tribal Consultation Official has 
certified that the requirements of the Executive Order have been met in 
a meaningful and timely manner. A copy of the certification is included 
in the docket for this rule.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    Executive Order 13045, ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997), applies 
to any rule that: (1) Is determined to be ``economically significant'' 
as defined under Executive Order 12866, and (2) concerns an 
environmental health or safety risk that EPA has reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, the Agency must evaluate the environmental health 
or safety effects of the planned rule on children, and explain why the 
planned regulation is preferable to other potentially effective and 
reasonably feasible alternatives considered by the Agency. This final 
rule is not subject to Executive Order 13045 because it is not 
``economically significant'' as defined under Executive Order 12866. 
Further, it does not concern an environmental health or safety risk 
that EPA has reason to believe may have a disproportionate effect on 
children.

H. Executive Order 13211 (Energy Effects)

    This rule is not a ``significant energy action'' as defined in 
Executive Order 13211, ``Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use'' (66 FR 28355 
(May 22, 2001)) because it is not likely to have a significant adverse 
effect on the supply, distribution, or use of energy. Further, we have 
concluded that this rule is not likely to have any adverse energy 
effects.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTTAA''), Public Law 104-113, section 12(d) (15 U.S.C. 
272 note) directs EPA to use voluntary consensus standards in its 
regulatory activities unless to do so would be inconsistent with 
applicable law or otherwise impractical. Voluntary consensus standards 
are technical standards (e.g., materials specifications, test methods, 
sampling procedures, and business practices) that are developed or 
adopted by voluntary consensus standards bodies. The NTTAA directs EPA 
to provide Congress, through OMB, explanations when the Agency decides 
not to use available and applicable voluntary consensus standards. This 
action does not involve technical standards. Therefore, EPA did not 
consider the use of any voluntary consensus standards.

J. Executive Order 12898: Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Under Executive Order 12898, ``Federal Actions to Address 
Environmental Justice in Minority Populations and Low-Income 
Populations,'' as well as through EPA's National Environmental Justice 
Advisory Council, EPA has undertaken to incorporate environmental 
justice into its policies and programs. EPA is committed to addressing 
environmental justice concerns, and is assuming a leadership role in 
environmental justice initiatives to enhance environmental quality for 
all residents of the United States. The Agency's goals are to ensure 
that no segment of the population, regardless of race, color, national 
origin, or income, bears disproportionately high and adverse human 
health and environmental effects as a result of EPA's policies, 
programs, and activities, and all people live in clean and sustainable 
communities. No action from this rule will have a disproportionately 
high and adverse human health and environmental effect on any segment 
of the population. In addition, this rule does not impose substantial 
direct compliance costs on those communities. Accordingly, the rule 
does not raise issues regarding Executive Order 12898.

K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2). The subpart O regulation is effective July 2, 2007.

List of Subjects

40 CFR Part 9

    Environmental protection, Reporting and recordkeeping requirements.

40 CFR Part 35

    Administrative practices and procedures, Environmental protection, 
Grant programs-environmental protection, Reporting and recordkeeping.

    Dated: April 19, 2007.
 Stephen L. Johnson,
Administrator.

0
For the reasons set out in the preamble, 40 CFR parts 9 and 35 are 
amended as follows:

PART 9--[AMENDED]

0
1. The authority citation for part 9 continues to read as follows:

    Authority: 7 U.S.C. 135 et seq., 136-136y; 15 U.S.C. 2001, 2003, 
2005, 2006, 2601-2671; 21 U.S.C. 331j, 346a, 348; 31 U.S.C. 9701; 33 
U.S.C. 1251 et seq., 1311, 1313d, 1314, 1318, 1321, 1326, 1330, 
1342, 1344, 1345 (d) and (e), 1361; E.O. 11735, 38 FR 21243, 3 CFR, 
1971-1975 Comp. p. 973; 42 U.S.C. 241, 242b, 243, 246, 300f, 300g, 
300g-1, 300g-2, 300g-3, 300g-4, 300g-5, 300g-6, 300j-1, 300j-2, 
300j-3, 300j-4, 300j-9, 1857 et seq., 6901-6992k, 7401-7671q, 7542, 
9601-9657, 11023, 11048.

0
2. In Sec.  9.1, the table is amended under the heading, ``State and 
Local Assistance,'' as follows:
0
a. By revising entries for ``35.6055(a)(2)'', ``35.6055(b)(1)'', 
``35.6055(b)(2)(i)-(ii)'', ``35.6105(a)(2)(i)-(v), (vii)'', 
``35.6120'', ``35.6145'', ``35.6155(a), (c)'', ``35.6230(a), (c)'', 
``35.6300(a)(3)'', ``35.6315(c)'', ``35.6320'', ``35.6340(a)'', 
``35.6350'', ``35.6500'', ``35.6550(b)(1)(iii)'', ``35.6550(b)(2)(i)'', 
``35.6585'', ``35.6595(a), (b)'', ``35.6600(a)'', ``35.6650'', 
``35.6655'', ``35.6660'', ``35.6665(a), (b)'', ``35.6700'',

[[Page 24504]]

``35.6705'', ``35.6710'', ``35.6805'', and ``35.6815(a), (c), (d)''.
0
b. By removing entries for ``35.6110(b)(2)'' and ``35.6550(a)(1)(ii)''.


Sec.  9.1  OMB approvals under the Paperwork Reduction Act.

* * * * *

------------------------------------------------------------------------
                                                                 OMB
                      40 CFR citation                        control No.
------------------------------------------------------------------------
 
                                * * * * *
                 State and Local Assistance
35.6055(a)(2)..............................................    2050-0179
35.6055(b)(1)..............................................    2050-0179
35.6055(b)(2)(i)-(ii)......................................    2050-0179
35.6105(a)(2)(i)-(v), (vii)................................    2050-0179
35.6120....................................................    2050-0179
35.6145....................................................    2050-0179
35.6155(a), (c)............................................    2050-0179
35.6230(a), (c)............................................    2050-0179
35.6300(a)(3)..............................................    2050-0179
35.6315(c).................................................    2050-0179
35.6320....................................................    2050-0179
35.6340(a).................................................    2050-0179
35.6350....................................................    2050-0179
35.6500....................................................    2050-0179
35.6550(b)(1)(iii).........................................    2050-0179
35.6550(b)(2)(i)...........................................    2050-0179
35.6585....................................................    2050-0179
35.6595(a), (b)............................................    2050-0179
35.6600(a).................................................    2050-0179
35.6650....................................................    2050-0179
35.6655....................................................    2050-0179
35.6660....................................................    2050-0179
35.6665(a), (b)............................................    2050-0179
35.6700....................................................    2050-0179
35.6705....................................................    2050-0179
35.6710....................................................    2050-0179
35.6805....................................................    2050-0179
35.6815(a), (c), (d).......................................    2050-0179
 
                                * * * * *
------------------------------------------------------------------------

* * * * *

PART 35--[AMENDED]

0
3. Subpart O is revised to read as follows:
Subpart O--Cooperative Agreements and Superfund State Contracts for 
Superfund Response Actions

General

Sec.
35.6000 Authority.
35.6005 Purpose and scope.
35.6010 Indian Tribe and intertribal consortium eligibility.
35.6015 Definitions.
35.6020 Requirements for both applicants and recipients.
35.6025 Deviation from this subpart.

Pre-Remedial Response Cooperative Agreements

35.6050 Eligibility for pre-remedial Cooperative Agreements.
35.6055 State-lead pre-remedial Cooperative Agreements.
35.6060 Political subdivision-lead pre-remedial Cooperative 
Agreements.
35.6070 Indian Tribe-lead pre-remedial Cooperative Agreements.

Remedial Response Cooperative Agreements

35.6100 Eligibility for remedial Cooperative Agreements.
35.6105 State-lead remedial Cooperative Agreements.
35.6110 Indian Tribe-lead remedial Cooperative Agreements.
35.6115 Political subdivision-lead remedial Cooperative Agreements.
35.6120 Notification of the out-of-State or out-of-an-Indian-Tribal-
area-of-Indian-country transfer of CERCLA waste.

Enforcement Cooperative Agreements

35.6145 Eligibility for enforcement Cooperative Agreements.
35.6150 Activities eligible for funding under enforcement 
Cooperative Agreements.
35.6155 State, political subdivisions or Indian Tribe-lead 
enforcement Cooperative Agreements.

Removal Response Cooperative Agreements

35.6200 Eligibility for removal Cooperative Agreements.
35.6205 Removal Cooperative Agreements.

Core Program Cooperative Agreements

35.6215 Eligibility for Core Program Cooperative Agreements.
35.6220 General.
35.6225 Activities eligible for funding under Core Program 
Cooperative Agreements.
35.6230 Application requirements.
35.6235 Cost sharing.

Support Agency Cooperative Agreements

35.6240 Eligibility for support agency Cooperative Agreements.
35.6245 Allowable activities.
35.6250 Support agency Cooperative Agreement requirements.

Combining Cooperative Agreements

35.6260 Combining Cooperative Agreement sites and activities.

Financial Administration Requirements Under a Cooperative Agreement

35.6270 Standards for financial management systems.
35.6275 Period of availability of funds.
35.6280 Payments.
35.6285 Recipient payment of response costs.
35.6290 Program income.

Personal Property Requirements Under a Cooperative Agreement

35.6300 General personal property acquisition and use requirements.
35.6305 Obtaining supplies.
35.6310 Obtaining equipment.
35.6315 Alternative methods for obtaining property.
35.6320 Usage rate.
35.6325 Title and EPA interest in CERCLA-funded property.
35.6330 Title to federally owned property.
35.6335 Property management standards.
35.6340 Disposal of CERCLA-funded property.
35.6345 Equipment disposal options.
35.6350 Disposal of federally owned property.

Real Property Requirements Under a Cooperative Agreement

35.6400 Acquisition and transfer of interest.
35.6405 Use.

Copyright Requirements Under a Cooperative Agreement

35.6450 General requirements.

Use of Recipient Employees (``Force Account'') Under a Cooperative 
Agreement

35.6500 General requirements.

Procurement Requirements Under a Cooperative Agreement

35.6550 Procurement system standards.
35.6555 Competition.
35.6565 Procurement methods.
35.6570 Use of the same engineer during subsequent phases of 
response.
35.6575 Restrictions on types of contracts.
35.6580 Contracting with minority and women's business enterprises 
(MBE/WBE), small businesses, and labor surplus area firms.
35.6585 Cost and price analysis.
35.6590 Bonding and insurance.
35.6595 Contract provisions.
35.6600 Contractor claims.
35.6605 Privity of contract.
35.6610 Contracts awarded by a contractor.

Reports Required Under a Cooperative Agreement

35.6650 Progress reports.
35.6655 Notification of significant developments.
35.6660 Property inventory reports.
35.6665 Procurement report.
35.6670 Financial reports.

Records Requirements Under a Cooperative Agreement

35.6700 Project records.
35.6705 Records retention.
35.6710 Records access.

Other Administrative Requirements for Cooperative Agreements

35.6750 Modifications.
35.6755 Monitoring program performance.
35.6760 Enforcement and termination for convenience.
35.6765 Non-Federal audit.
35.6770 Disputes.
35.6775 Exclusion of third-party benefits.
35.6780 Closeout.
35.6785 Collection of amounts due.
35.6790 High risk recipients.

Requirements for Administering a Superfund State Contract (SSC)

35.6800 Superfund State Contract.
35.6805 Contents of an SSC.
35.6815 Administrative requirements.
35.6820 Conclusion of the SSC.

    Authority: 42 U.S.C. 9601 et seq.

[[Page 24505]]

Subpart O--Cooperative Agreements and Superfund State Contracts for 
Superfund Response Actions

General


Sec.  35.6000  Authority.

    This subpart is issued under section 104(a) through (j) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980, as amended (CERCLA)(42 U.S.C. 9601 et seq.).


Sec.  35.6005  Purpose and scope.

    (a) This subpart codifies recipient requirements for administering 
Cooperative Agreements awarded pursuant to section 104(d)(1) of CERCLA. 
This subpart also codifies requir