10/08/87

Contractor Listing Protocols> Includes Attachments WW, XX & YY


                       CONTRACTOR LISTING PROTOCOLS

                         Contractor Listing Staff
                            LEPB - OCAPO - OECM

                              October 8, 1987

                           LIST OF ABBREVIATIONS

    The following abbreviations are used in the Contractor Listing
Protocols.

AA                                     Assistant Administrator for
                                       Enforcement and Compliance Monitoring

AEC (s)                                Associate Enforcement Counsel for Air
                                       or Water, or Both

CAA                                    Clean Air Act

CE                                     Case Examiner

CFR                                    Code of Federal Regulations

CWA                                    Clean Water Act

DAA-OECM-Civil                         Deputy Assistant Administrator for
                                       Enforcement and Compliance Monitoring
                                       - Civil

DAA-OECM-Criminal                      Deputy assistant Administrator for
                                       Enforcement and Compliance Monitoring
                                       - Criminal

ECS-DOJ                                Environmental Crimes Section of the
                                       Department of Justice

EPA                                    Environmental Protection Agency

GSA                                    General Services Administration

LEPB                                   Legal Enforcement Policy Branch

List                                   The EPA List of Violating Facilities

LO                                     Listing Official

NEIC                                   National Enforcement Investigations
                                       Center

OCAPO                                  Office of Compliance Analysis and
                                       Program Operations

OCEC                                   Office of Criminal Enforcement
                                       Counsel

OGC                                    Office of General Counsel

OPA                                    Office of Public Affairs

ORC                                    Office of Regional Counsel

RA                                     Regional Administrator

                     CONTRACTOR LISTING PROTOCOLS  */

  */ The policies and procedures established in this document are intended
    solely as guidance for government personnel.  They are not intended, and
    cannot be relied upon, to create any rights, substantive or procedural,
    enforceable by any party in litigation with the United States.  EPA
    reserves the right to act at variance with these policies and procedures
    and to change them at any time without public notice.

I.  INTRODUCTION

     This document, the Contractor Listing Protocols, sets forth the
procedures that the Listing Official ( LO ), or his or her designee, will
follow in carrying out the contractor listing regulations, 40 CFR Part 15.
It addresses both listing and removal procedures and identifies the nature
of the assistance that will be required from all EPA offices supporting the
listing effort.

     The protocols are divided into five major sections.  This section, the
Introduction, explains the format of the Protocols and describes how to use
them.  Section II describes the statutory and regulatory authorities
governing the contractor listing program.  Section III contains a detailed
description of the procedures followed by the LO in processing mandatory
listing actions and discretionary recommendations to list.  Similarly,
Section IV provides a detailed description of the procedures the LO follows
when processing automatic removals and requests for removal from the EPA
List of Violating Facilities ( the List ).  Sections III and IV also
describe the essential roles of EPA staff in the Region and at Headquarters
in carrying out the listing program.  Finally, Section V sets forth the
requirement that the LO publish the List in the Federal Register.

     In addition to describing in detail the procedures to be followed when
processing listing and removal actions, the Protocols contain over 45 model
letters and memoranda which can be used as guidance when drafting the
documents called for under the protocols.  The attachments also include the
federal regulations governing the listing program ( Attachment ZZ ) and
three policy documents for the listing program ( Attachments WW - YY ).

     Although this document provides detailed procedures for processing
listing and removal actions, it does not attempt to prescribe the
circumstances under which listing should be used as an enforcement tool.

                                    -2-

II. BACKGROUND

    The Clean Air Act ( CAA ), Section 306, and the Clean Water Act ( CWA ),
Section 508, as implemented by Executive Order 11738 and 40 CFR Part 15
( Attachment ZZ ), authorize EPA to prohibit facilities from obtaining
federal government contracts, or assistance in the form of grants or loans
( including subcontracts, subgrants and subloans ), as a consequence of
certain criminal or civil violations of the CAA or CWA.  Facilities
prohibited from receiving federal contracts or assistance under this
authority are placed on the Environmental Protection Agency's ( EPA ) List
of Violating Facilities ( the List ).  The statutes, their legislative
histories, and the regulations identify two purposes for the listing
program:  to protect the government's proprietary interest and ensure
compliance with the Clean Air Act and Clean Water Act.

    Facilities owned, leased or operated by persons  1/  found guilty of
certain criminal violations are subject to automatic ( i.e., mandatory )
listing upon conviction.

  1/ Throughout this document references to "persons" are understood to
    include all entities identified in the definition of "person" in 40 CFR
    Section 15.4.

Facilities are subject to discretionary listing as a result of certain civil
and criminal violations of the CAA or CWA after following procedures
contained in the regulations.  Although CAA and CWA violations which have
been the subject of criminal or civil enforcement activities are the basis
for listing a facility, listing is an administrative function which is
independent of the underlying enforcement action.  Listing provides EPA with
an effective administrative tool to obtain compliance with the CAA and CWA
where an administrative or judicial action identified in 40 CFR Section
15.11(a)(1) - (6) has already been initiated against a facility or its
owner, operator or supervisor has been convicted of an offense under the
Clean Air Act or Clean Water Act.

III. LISTING PROCEDURES

    A.   Computation of Time.  Unless otherwise stated, in computing any
         period of time prescribed or allowed in the protocols, the day of
         the event from which the designated period begins to run shall not
         be included.  Saturdays, Sundays and Federal legal holidays shall
         be included.  When a stated time period expires on a Saturday,
         Sunday or legal holiday, the stated time period shall be extended
         to include the next business day.  Failure to take action in a
         timely fashion may result in the loss of rights, termination of a
         listing or removal action, or the decision to proceed with the
         listing or removal action without the participation of the
         nonresponding party.

                                    -3-

    B.   Mandatory Listing.  The facility that is the source of the Clean
         Air Act or Clean Water Act violations is automatically placed on
         the List if it is owned, leased or supervised by a person convicted
         under Section 113(c)(1) of CAA or Section 309(c) of CWA for those
         violations, Section 15.10.  2/

  2/ Throughout this document references to the regulations are to 40 CFR
    Part 15 unless otherwise indicated.  Thus 40 CFR Section 15.10 will
    appear as Section 15.10.

         Even though a facility is automatically listed if it is the source
         of a Clean Air Act or Clean Water Act violation that leads to the
         criminal conviction of the owner, operator or supervisor of the
         facility, the LO follows the steps listed below to process the
         mandatory listing action.

          1.  Maintain File of Pending Criminal Cases.  The Legal
              Enforcement Policy Branch ( LEPB ), with assistance from the
              Office of Criminal Enforcement Counsel ( OCEC ), develops and
              maintains a compilation of the indictments, informations and
              other charging documents that evidence potential criminal
              charges that may lead to mandatory listing of a facility.

         2.   Obtain Notice of Convictions.  It is the responsibility of
              OCEC to notify the LO of criminal convictions, Section
              15.13(a), and supply copies of the informations, indictments,
              or other charging documents and judgments of conviction to the
              LO.  Notice of the conviction should be sent to the LO prior
              to sentencing, even though the judgement of conviction may not
              be filed until some time later.

         3.   Review the Convictions.  The LO determines whether listing is
              warranted under the regulations by reviewing the documents
              associated with the conviction to ensure that:  (a) the
              conviction occurred under Section 113(c)(1) of the CAA or
              Section 309(c) of the CWA, Section 15.10; and (b) the facility
              to be listed was owned, leased or supervised by the person
              convicted under Section 113(c)(1) of the CAA or Section 309(c)
              of the CWA, Section 15.10.

                   These determinations may require the LO to review the
              following documentation, obtained with the assistance of OCEC:

              (1) documentation of the charges filed against the defendant,
              as evidenced by the signed and dated indictment, information,
              or other charging document ( original and as finally
              amended ); (2) documentation of the circumstances of the
              conviction, as evidenced

                                    -4-

              by court-filed documents such as the signed and dated final
              plea agreements, dismissals of counts, and sentencing reports
              and memoranda; (3) documentation that the final conviction or
              guilty plea has been entered by court; (4) documentation that
              the sentence has been imposed, as evidenced by such court
              documents as the signed and dated final Judgement and
              Commitment / Probation Order; and (5) documentation evidencing
              the underlying technical data, evidence of violation or
              corrective action, or other relevant information.

              4.   Notify facility and Public of Listing.  Once the LO
                   determines that a facility meets the criteria for
                   mandatory listing, the LO:

                   a.   Places the facility on the List as of the date of
                        conviction.

                   b.   Assigns a docket number to the facility and places
                        the case on the listing docket;

                   c.   Notifies:  the Assistant Administrator for
                        Enforcement and Compliance Monitoring ( AA ); the
                        Director, OCAPO; the Deputy Assistant Administrator
                        for Enforcement and Compliance Monitoring-Civil
                        ( DAA-OECM-Civil ); the Deputy Assistant
                        Administrator for Enforcement and compliance
                        Monitoring-Criminal ( DAA-OECM-Criminal ); the
                        owner, operator or supervisor of the facility; the
                        Associate Enforcement Counsel for Air, or Water, or
                        both ( AEC(s) ); the Regional Administrator, Office
                        of Regional Counsel and regional program office; the
                        Chief Counsel, Environmental Crimes Section of the
                        Department of Justice ( ECS-DOJ ); the Director,
                        Investigative Unit, Office of Criminal
                        Investigations, National Enforcement Investigations
                        Center ( NEIC ); and the Assistant United States
                        Attorney in the criminal action; ( Attachment A ),
                        Section 15.16(a);

                   d.   Publishes a notice in the Federal Register
                        ( Attachment B ), Section 15.16(c);

                   e.   Notifies the General Services Administration ( GSA )
                        that the facility is to be added to GSA's
                        Consolidated List of Debarred, Suspended, and
                        Ineligible Contractors ( Attachment C );

                   f.   Notifies all federal agencies with major assistance
                        responsibilities, identified on the Assistance
                        Agencies List ( Attachment D ), that the facility is
                        ineligible for assistance programs ( Attachment E );
                        and

                                    -5-

                   g.   Provides the EPA Office of Public Affairs ( OPA )
                        with the information necessary to prepare a press
                        release or press advisory  3/  ( Attachment F ).

  3/ Use of Press Releases.  The LO works with the regional press office and
    EPA Office of Public Affairs to see that press releases concerning
    listing actions are issued, as appropriate, to the national press, local
    media in the area where the violations occurred, and the trade press of
    the affected industry.  ( See Guidance on Implementing the Discretionary
    Contractor Listing Program, dated November 26, 1986, GM-53.  )

    C.   Discretionary Listing.  The discretionary listing process begins
         with the filing of a recommendation to list.  A facility will be
         listed under the discretionary listing process if it is determined
         that the facility has a record of continuing or recurring
         noncompliance with clean air or clean water standards and has been
         the subject of one of the enforcement activities described in
         Section 15.11(a)(1)-(6).  See Section III of the Guidance on
         Implementing the Discretionary Contractor Listing Program, dated
         November 26, 1986, GM-53, for guidance on selecting discretionary
         listing cases.

              A recommendation to list may be submitted by a "recommending
         person," defined in Section 15.4 as the "Regional Administrator,
         the Associate Enforcement Counsel for Air or the Associate
         Enforcement Counsel for Water or their successors, the Assistant
         Administrator for Air and Radiation or the Assistant Administrator
         for Water or their successors, a Governor, or a member of the
         public."  The Regions will have primary responsibility for
         selecting cases for EPA-initiated listing actions.  The Associate
         Enforcement Counsels for Air and Water ( AEC(s) ) and the Assistant
         Administrators for Air and Water will rarely initiate listing
         recommendations.

              Each recommendation to list will be processed by a team
         composed of representatives from the Office of Regional Counsel,
         the regional program office, the Associate Enforcement Counsel
         ( AEC ) for Air or Water or both, and the LO.  The regional
         representatives to the team will act as advocates for the Region's
         position on the recommendation to list.  The representative(s) of
         the AEC(s) will act as counsel to both the Region and the LO.  The
         adjudicative function will be represented by the LO's designee to
         the team.  Each team member will be responsible for ensuring that
         his or her office completes its assignments under the Protocols in
         a timely fashion and that all necessary reviews by policy level
         officials within his or her office are obtained.

                                    -6-

              Under the regulations, a recommending person may withdraw a
         recommendation to list at any time before the conclusion of the
         listing proceeding.  A recommending person is obligated to withdraw
         the recommendation to list if he or she determines that the
         conditions which gave rise to the recommendation to list have been
         corrected or the facility is on an EPA-approved plan for compliance
         which will ensure that the conditions that gave rise to the
         recommendation to list will be corrected, Section 15.11(d) ( see
         also paragraph III.C.7, page 13 ).  Thus, as a practical matter, if
         the facility fully corrects the condition which is the basis for
         the listing action and the recommending person withdraws the
         recommendation to list, the listing process is terminated.  The
         steps for processing a discretionary listing action are set forth
         below.

         1.   LO Receives Recommendation to List.  The discretionary listing
              process begins when the LO receives a recommendation to list,
              Section 15.11(b).  It is anticipated that most recommendations
              will be prepared by the Regions and they will have lead
              responsibility for preparing EPA-initiated recommendations.
              The November 26, 1986, Guidance on Implementing the
              discretionary Contractor Listing Program, GM-53, includes
              model discretionary listing recommendations based on both
              administrative and judicial enforcement actions.  The Regions
              will also act as the Agency's primary contact for processing
              State or citizen initiated listing recommendations.

         2.   Review Recommendation.  As soon as a recommendation to list is
              received, the LO transmits a copy to the appropriate AEC(s),
              and, provided the Region did not submit the recommendation to
              list, the LO transmits the recommendation to list to the
              Regional Administrator ( RA ), Office of Regional Counsel
              ( ORC ), and regional program office to review and submit
              comments on the recommendation to the LO within 10 days
              ( Attachment G ).

                   During the same period, the LO reviews the recommendation
              to list, Section 15.11(c), to ensure that is contains:  (a)
              the name, address and telephone number of the person filing
              the recommendation, Section 15.11(b)(1); (b) a description of
              the facility, including its name and address, Section
              15.11(b)(2); (c) a description of the alleged continuing or
              recurring noncompliance and supporting data, Section
              15.11(b)(3); and (d) a description of the criminal, civil or
              administrative action or conviction which is pertinent to the
              facility and the alleged continuing or recurring violations,
              Section 15.11(b)(4).

                                    -7-

                   If, after reviewing the recommendation to list and the
              comments on the recommendation to list, the LO determines that
              additional documentation is needed, the LO returns the
              recommendation to the recommending person identifying in
              writing the specific information required ( Attachment H ).
              Resubmitted recommendations must processed according to the
              procedures for processing an original recommendation as set
              forth in paragraph III.C ( page 5 ).

         3.   LO Briefs AA on Listing Recommendation.  When the LO is
              satisfied that the recommendation to list meets the
              requirements of the regulations, the LO does the following:

              a.   The LO Dockets the Case.  The LO assigns a docket number
                   to the facility and places the case on the listing
                   docket.

              b.   The LO Prepares a Briefing Memorandum.  The LO prepares a
                   briefing memorandum ( Attachment J ) and transmits it and
                   a copy of the recommendation to list to the AA.  The
                   briefing memorandum should:  (i) summarize the status of
                   the listing recommendation;  (ii) review for the AA the
                   pros and cons of proceeding with the listing action at
                   this point based on the comments received from the Region
                   and the AEC(s); and (iii) offer the AA the opportunity to
                   have an oral briefing on the listing recommendation.  If
                   an oral briefing is requested, the LO schedules the
                   briefing and arranges for representatives of the AEC(s)
                   and OCAPO to be present and offers the RA, ORC and
                   regional program office an opportunity to be present in
                   person or by telephone.  At the briefing, staff will
                   advise the AA of the basis for the recommendation to
                   list.

         4.   AA Declines to List.  If, after being briefed on the listing
              recommendation, the AA decides to decline the recommendation
              to list, the LO does the following:

              a.   The LO Prepares a Statement of Reasons.  The LO prepares
                   a brief statement ( Attachment K ) for the AA's signature
                   explaining the AA's reasons for the decision not to
                   proceed with the listing action.  This statement will be
                   included in the record of the listing action and provide
                   to the recommending person and the owner, operator or
                   supervisor of the facility.  Consequently, the statement
                   should exclude all information which the Agency would
                   seek to withhold under the Enforcement Document Release
                   Guidelines, GM-43, dated September 16, 1985.

                                    -8-

              b.   The LO Submits the Statement for Headquarters Review.
                   The LO submits the draft statement for review by (1) the
                   AEC(s) for Air, Water or both; (2) the Director, OCAPO;
                   and (3) the DAA-OECM-Civil and, to prevent conflict with
                   potential criminal actions, (4) the DAA-OECM-Criminal.

              c.   The LO Transmits the Statement to the AA to Sign.  At the
                   conclusion of the review by appropriate Headquarters
                   staff, the LO transmits the statement to the AA for his
                   signature.

              d.   The LO Notifies Owner.  Once the AA has approved and
                   signed the statement of reasons, the LO notifies the
                   owner, operator or supervisor of the facility that a
                   recommendation to list the facility has been filed
                   ( Attachment L ) and encloses a copy of the
                   recommendation to list and the statement of the reasons
                   for not proceeding with the recommendation to list
                   ( Attachment K ) with the notice letter.  The LO also
                   sends a copy of the notice letter and enclosures to the
                   recommending person.

         5.   AA Decides to Proceed with Proposed Listing, LO Notifies
              Facility and Prepares Draft Determination.  After the LO has
              briefed the AA on the recommendation to list and the AA has
              decided to proceed with the recommendation to list, the LO
              does the following:

              a.   The LO Notifies Owner.  The LO notifies the owner,
                   operator or supervisor of the facility that a
                   recommendation to list the facility has been filed and
                   encloses a copy of the recommendation to list with the
                   notice letter.  The notice will also advise the owner,
                   operator or supervisor that he or she may request a
                   listing proceeding before a Case Examiner ( CE ) to
                   determine the propriety of the proposed listing
                   ( Attachment M ), Section 15.12(a).  A copy of this
                   notice is sent to the Listing Case Team and the
                   recommending person.

              b.   The LO Transmits the Recommendation to the Region.  The
                   LO prepares a transmittal memorandum ( Attachment N ),
                   and transmits the recommendation to list and any comments
                   received from the AA, AEC, RA and regional program office
                   to ORC requesting that ORC prepare and return to the LO
                   within 15 days a detailed summary of the documentation
                   regarding the recommendation to list ( Attachment O ),
                   and copies of any documents necessary for the LO to
                   prepare a draft determination.  Unless the Regional
                   Administrator or Deputy Regional Administrator

                                    -9-

                   have previously reviewed the recommendation to list, one
                   of these officials must acknowledge in writing that he or
                   she has reviewed the recommendation to list and has
                   attached any comments to recommendation.

              c.   The LO Drafts the Determination.  Upon receipt of the
                   recommendation to list and summary of documentation
                   regarding the recommendation to list from the Region and
                   after the 30-day period for requesting a listing
                   proceeding has expired, the LO drafts a determination for
                   the AA's signature ( Attachment P ), and revises the
                   summary of documentation ( Attachment O ) to include any
                   materials available at Headquarters.

              d.   The LO Submits the Draft Determination for Headquarters
                   Review and Comment.  Once the draft determination to list
                   has been prepared, the LO acknowledges that he or she has
                   reviewed the draft determination.  The draft
                   determination ( Attachment P ) is then transmitted for
                   review and comment, along with the summary of
                   documentation ( Attachment O ), to:  (1) the AEC(s) for
                   Air, Water or both; (2) the Director, OCAPO; and (3) the
                   DAA-OECM-Civil and the DAA-OECM-Criminal.

         6.   Final Agency Action Taken on the Recommendation to List.
              After the LO has notified the facility that a recommendation
              to list has been filed and forwarded to the AA for decision,
              final Agency action on the recommendation to list will occur
              as a result of one of the following processes.

              a.   AA Decides ( Listing Proceeding Not Held ).  At any point
                   before a listing proceeding is held, the AA may, in his
                   or her discretion, decline to list the facility, Section
                   15.11(c).  If a facility does not request a listing
                   proceeding within 30 days of receiving notice that a
                   recommendation to list has been filed, the AA must decide
                   whether to list the facility.  The AA's determination on
                   the recommendation to list is final Agency action,
                   Section 15.12(d).

                        After all of the EPA personnel identified in
                   paragraph III.C.5.d have reviewed the draft determination
                   and commented on it, the LO prepares a transmittal
                   memorandum ( Attachment Q ), and sends to the AA a draft
                   determination ( Attachment P ), any comments from the
                   AEC(s) or the Region, the summary of supporting
                   documentation ( Attachment O ), and a one-page briefing
                   memorandum

                                   -10-

                   ( Attachment R ) that summarizes:  (i) the history of the
                   case; (ii) the status of the case; (iii) the reasons for
                   the recommended determination, (iv) whether the RA, ORC
                   and regional program office have expressed comments in
                   agreement with the draft determination; and (v) any
                   special problems or considerations.

                        If an oral briefing is requested, the LO schedules
                   the briefing, arranges for representatives of the AEC(s)
                   and OCAPO to be present, and offers the RA, DRA, ORC and
                   regional program office an opportunity to be present at
                   the briefing in person or by telephone.

                        Based on the AA's decision on the recommendation to
                   list, the LO does the following:

                   (1)  AA Decides to List.  If  the AA decides to list, his
                        or her decision is final Agency action on the
                        recommendation to list and the LO follows the steps
                        set forth in the Listing Official's Discretionary
                        Listing Checklist found in Table One on page 27.

                   (2)  AA Declines to List.  If the AA decides not to list,
                        the LO notifies the recommending person, the owner,
                        operator or supervisor of the facility, the AEC(s)
                        and the RA, ORC and regional program office that the
                        recommendation to list has been declined
                        ( Attachment U ).  The AA's decision not to list is
                        final Agency action on the listing recommendation.

              b.   Listing Proceeding Requested.  If the owner, operator or
                   supervisor of the facility requests a listing proceeding
                   within 30 days of receiving notice that a recommendation
                   to list has been filed, the LO does the following:

                   (1)  AA Designates a Case Examiner.  The AA designates a
                        Case Examiner for the listing proceeding
                        ( Attachment V ), Section 15.12(a).  The Case
                        Examiner may be any EPA employee who has subject
                        matter expertise and who is not involved in the
                        underlying enforcement action or listing action.
                        The LO will consult with the AEC(s) to identify
                        appropriate persons to act as Case Examiners in
                        listing proceedings.

                                   -11-

                   (2)  LO Schedules Listing Proceeding.  The LO schedules
                        the listing proceeding and notifies the recommending
                        person, the owner, operator or supervisor of the
                        facility, the Case Examiner, and the Listing Case
                        Team ( see paragraph Section III.C above ) of the
                        date, time and place of the listing proceeding
                        ( Attachment W ), Section 15.12(b).  That notice
                        letter also informs all parties of their obligation
                        to provide all other parties any papers which they
                        intend to submit at the listing proceeding at least
                        7 days prior to the listing proceeding.

                             It is the responsibility of the LO to attempt
                        to arrange the timing and location of the listing
                        proceeding so that it is convenient for all parties
                        to attend.  The LO determines whether the listing
                        proceeding should be adjourned for good cause shown,
                        as provided in paragraph III.C.8.a ( page 14 ).

                   (3)  LO Obtains Court Reporter.  The LO retains the
                        services of a court reporter, Section 15.13(b)(2),
                        paid for by EPA.

                   (4)  Listing Proceeding Held.  The listing proceeding is
                        conducted in accordance with Section 15.13(b).
                        Regardless of who files the recommendation to list,
                        EPA will be represented at the listing proceeding by
                        the EPA regional or Headquarters attorney
                        responsible for the underlying enforcement action
                        unless that attorney is unavailable in which case
                        ORC will select an attorney to represent EPA.

                   (5)  LO Obtains Decision of CE.  The Case Examiner issues
                        his or her written decision on whether to list the
                        facility and files it with the LO within 30 days of
                        the conclusion of the listing proceeding, and any
                        supplementation of record allowed by the Case
                        Examiner, Section 15.13(c).

              c.   LO Sends Notice of CE's Decision and Opportunity for OGC
              Review.  After the CE files his or her decision with the LO,
              the LO is responsible for notifying the appropriate parties of
              the CE's decision as follows:

                                   -12-

                   (1)  CE Decides to List.  The LO notifies the owner,
                        operator or supervisor of the facility, the
                        recommending person, the AEC(s), and the RA, ORC,
                        and the regional program office, and the Director,
                        OCAPO of the CE's decision to list the facility and
                        of the facility's opportunity to have OGC review
                        that decision if such review is requested within 30
                        days ( Attachment X ), Section 15.13(d).

                   (2)  CE Decides Not to List.  The LO notifies the owner,
                        operator or supervisor of the facility, the RA, ORC,
                        and the regional program office, and the Director,
                        OCAPO of the Case Examiner's decision denying the
                        recommendation to list the facility.  The Case
                        Examiner's decision not to list is final Agency
                        action on the recommendation to list ( Attachment
                        X ), Section 15.14(d).

              d.   OGC Review Not Requested.  If the CE decides to list the
                   facility, the facility may request that OGC review the
                   CE's decision.  The request for review must be made in
                   writing and must be received by the LO within 30 days of
                   the date on which notice of the CE's decision was
                   received by the facility.

                        If the LO does not receive a timely written request
                   for OGC review, then the CE's decision granting the
                   recommendation to list stands as final Agency action,
                   Section 15.14(d), and the LO follows the steps set forth
                   in the Listing Checklist found in Table One on page 27.

              e.   OGC Review Requested.  If the facility files a timely
                   request with the LO for OGC review, the LO does the
                   following:

                   (1)  The LO Transmits the Request for OGC Review to ORC.
                        The LO transmits ( Attachment Y ) a copy of the
                        request for OGC review to ORC.  ORC is responsible
                        for obtaining comments from the AEC(s) and
                        recommending person ( if the recommendation to list
                        was not filed by EPA ).  ORC must then prepare and
                        return to the LO, within 14 days of receiving the
                        request for OGC review, a reply brief stating the
                        Agency's response to the facility's claims in the
                        request for OGC review.  Generally, the attorney who
                        represented EPA at the listing proceeding should
                        prepare the reply brief.

                                   -13-

                   (2)  LO Transmits Request to OGC.  When the LO receives
                        the reply brief responding to the request for OGC
                        review, the LO transmits to OGC:  (i) the Case
                        Examiner's decision; (ii) the request for review;
                        (iii) the reply brief; (iv) the comments of the
                        AEC(s) and recommending person; and (v) the entire
                        record of the listing action ( Attachment Z ).

                   (3)  OGC Reviews CE's Decision.  OGC reviews the Case
                        Examiner's decision based on the record of the
                        listing proceeding considered as a whole, and issues
                        a final decision within 30 days or as soon as
                        practicable, Section 15.14(c).

              f.   The LO Obtains OGC's Decision.  When OGC files its
                   decision with the LO, it becomes final Agency action on
                   the recommendation to list, Section 15.14(c).  The LO
                   then does the following:

                   (1)  OGC Affirms the Case Examiner.  If OGC affirms the
                        Case Examiner's decision to list, listing is
                        effective when OGC's decision is filed with the LO.
                        The LO follows the steps in the Listing Official's
                        Discretionary Listing Checklist found in Table One
                        on page 27.

                   (2)  OGC Reverses the Case Examiner.  If OGC reverses the
                        Case Examiner, the LO notifies the owner, operator,
                        or supervisor of the facility, the recommending
                        person, the AA, the Director, OCAPO, the AEC(s) and
                        the RA, ORC and regional program office, that the
                        recommendation to list has been denied on the basis
                        of OGC's decision on review ( Attachment AA ).

         7.   Withdrawal of a Recommendation to List.  The recommending
              person may withdraw his or her recommendation to list under
              the following circumstances:

              a.   Prior to the Conclusion of the Listing Proceeding.  At
                   any time before the Case Examiner ( CE ) issues his or
                   her written decision concluding the listing proceeding,
                   the recommending person may withdraw the recommendation
                   to list for any reason.  However, a request to withdraw
                   the recommendation to list must be made in writing and
                   must state the reason for withdrawing the request.  A
                   recommending person must withdraw a recommendation to
                   list

                                   -14-

                   if he or she determines that the facility has corrected
                   the condition which gave rise to the recommendation to
                   list, Section 15.11(d).

              b.   After the Conclusion of the Listing Proceeding.  After
                   the Case Examiner ( CE ) has issued his or her decision
                   at the conclusion of the listing proceeding, a
                   recommendation to list may only be withdrawn if the
                   recommending person determines that the facility has
                   corrected the condition which gave rise to the
                   recommendation to list, Section 15.11(d).  The request to
                   withdraw the recommendation to list must be made in
                   writing and must state the reason for withdrawing the
                   request.  A recommending person must withdraw a
                   recommendation to list if he or she determines that the
                   facility has corrected the condition which gave rise to
                   the recommendation to list, Section 15.11(d).

         8.   Stays of a Discretionary Listing Action.  All stays of listing
              actions are presumed to be prejudicial to the proceedings.
              Consequently, a stay of a discretionary listing action may be
              granted only under the following circumstances:

              a.   Prior to the Listing Proceeding.  The LO may grant a stay
                   of the discretionary listing action (1) for a period not
                   to exceed 60 days, (2) upon timely notice, (3) for good
                   cause shown, (4) on the record, and (5) after
                   consideration of the prejudice to the parties or the
                   proceeding.

              b.   During the Listing Proceeding.  The Case Examiner may
                   grant a stay of the listing proceeding (1) for a period
                   not to exceed 60 days, (2) to permit any party to obtain
                   evidence or (3) for any other reason that will advance
                   the proceedings, (4) giving due consideration to any
                   prejudice to the parties.

              c.   After the Listing Proceeding.  The LO may grant a stay of
                   the discretionary listing action (1) for a period not to
                   exceed 60 days, (2) upon timely notice, (3) for good
                   cause shown, (4) on the record, and (5) after
                   consideration of the prejudice to the parties.  Any stay
                   shall not extend the time in which a party must request
                   EPA General Counsel review of a Case Examiner's decision
                   in a listing proceeding.

                                    -15-

IV. PROCEDURES FOR REMOVAL FROM THE LIST

    A facility may be removed from the List in one of four ways.  A facility
may be removed automatically if the conviction which was the basis for
mandatory listing or the decision in the underlying enforcement action that
was the basis for discretionary listing is reversed, or after one-year on
the List in some discretionary listing cases.  A facility may also be
removed from the List following final Agency action as a result of:  a
favorable decision by the AA on the facility's request for removal; a
favorable decision by a CE following the AA's denial of the request to
remove the facility from the List; or a favorable decision by the
Administrator if the CE denies the removal request.

    Requests for removal will be processed by a removal case team composed
of staff representatives of the AEC(s), the ORC, the regional program office
and the LO.  The regional representatives to the team will act as advocates
for the Region's position on the removal request.  The representative(s) of
the AEC(s) will act as counsel to both the Region and the LO.  The
adjudicative function will be represented by the LO's designee to the team.
Each team member will be responsible for ensuring that his or her office
completes its assignments under the Protocols in a timely fashion and that
all necessary reviews and acknowledgements from policy level officials
within his or her office are obtained.

    A.   Automatic Removal

         1.   Mandatory Listing

              a.   Reversal of Conviction.  The owner, operator or
                   supervisor of the facility is responsible for informing
                   the LO if any criminal conviction which resulted in
                   listing is overturned and must provide a certified copy
                   of the judicial order reversing the conviction.

                        Upon receipt of that order and confirmation that a
                   legal basis for mandatory listing no longer exists, the
                   LO follows the steps set forth in the Listing Official's
                   Removal Checklist found in Table Two on page 28.  If
                   there is a dispute concerning the effect of a court order
                   purportedly reversing a conviction, the dispute shall be
                   resolved by processing the request as a request for
                   removal based on correcting the condition that gave rise
                   to listing.  The procedures set forth at paragraph IV.B.4
                   ( page 19 ) are used in processing that request.  A
                   further appeal which leads to reinstatement of the
                   judgment of conviction will result in automatic
                   relisting.

                                   -16-

         2.   Discretionary Listing

              a.   Reversal of Underlying Order.  The owner, operator or
                   supervisor of the facility is responsible for informing
                   the LO if any order which was the basis for a
                   determination to list has been reversed and must provide
                   a certified copy of the document evidencing the reversal
                   of the prior order.

                        Upon confirmation that a legal basis for
                   discretionary listing no longer exists, the LO follows
                   the steps set forth in the Listing Official's Removal
                   Checklist found in Table Two on page 28.  If there is a
                   dispute concerning the effect of an order purportedly
                   reversing a prior order which was the sole basis for a
                   discretionary listing determination, the dispute shall be
                   resolved by processing the request as a request for
                   removal based on correcting the condition that gave rise
                   to listing.  The procedures set forth at paragraph IV.B.4

                   ( page 19 ) are used in processing that request.  A
                   further appeal which leads to the reinstatement of the
                   order which was the basis for discretionary listing will
                   result in automatic relisting.

              b.   Expiration of One Year.  A facility listed under Sections
                   15.11(a)(4), (a)(5), or (a)(6), is eligible to be removed
                   from the List after one year, unless, within that one
                   year period, the LO is informed that:  (1) a basis for
                   mandatory listing exists as a result of the conviction of
                   the owner, operator or supervisor of the facility for a
                   violation of Section 113(c)(1) of the CAA or Section
                   309(c) of the CWA; or (2) a basis for discretionary
                   listing exists as a result of the facility's continuing
                   or recurring noncompliance with clean air or clean water
                   standards and:  (a) a federal court has convicted any
                   person who owns, operates or supervises the facility of a
                   violation of Section 113(c)(2) of the CAA, Section
                   15.11(a)(1); or (b) a state or local court has convicted
                   any person who owns, operates or supervises the facility
                   of a criminal offense on the basis of noncompliance with
                   clean air or clean water standards, Section 15.11(a)(2);
                   or (c) a federal, state, or local court has issued an
                   order or civil ruling as a result of noncompliance with
                   clean air or clean water standards, Section 15.11(a)(3).

                        If, after a facility has remained on the List for
                   one year, the LO determines that the facility is entitled
                   to removal from the List, the LO follows the steps in the
                   Listing Official's Removal Checklist found in Table Two
                   on page 28.

                                   -17-

    B.   Requests for Removal.  Regardless of the underlying basis for
         removal and regardless of whether listing was the result of the
         mandatory or discretionary listing process, the removal process can
         be initiated by filing a request for removal with the LO.  The
         original recommending person or any person who owns, operates or
         supervises a listed facility may file a request for removal with
         the LO, Section 15.22(a).

              45-DAY PERIOD.  As soon as the request is received, the LO:
         (i) notes on the listing docket the date on which the request for
         removal was filed; (ii) reviews the request to determine the basis
         upon which removal is sought; and (iii) sends a letter to the
         person requesting removal that acknowledges receipt of the request
         and notifies him or her that the failure of EPA to respond to the
         request for removal within 45 days of the date of the notice letter
         constitutes a denial of the request for removal at which point a
         removal hearing before a Case Examiner may be requested
         ( Attachment CC ).  The Agency's goal is to process each request
         for removal before this 45-day period expires.

           1. Reversal of Underlying Court Order.  If the request for
              removal is founded on the reversal of the court order which
              was the basis for listing, then the LO follows the procedures
              in paragraphs IV.A.1 ( page 15 ) or IV.A.2.a ( page 16 )
              above.

           2. Expiration of One Year ( Discretionary Listing Only ).  If the
              request for removal is founded on the expiration of one year
              in a discretionary listing case under Sections 15.11(a)(4),
              (a)(5) or (a)(6), then the LO follows the procedures in
              paragraphs IV.A.2.b ( page 16 ) above.

           3. Plan for Compliance ( Discretionary Listing Only ).  If the
              request for removal is founded on the facility's establishing
              a plan for compliance which is acceptable to the AA, then the
              LO follows the procedures described below.

( Day 1-10 )  a.   Requests Filed by the Regional Office.  If the request
                   for removal was filed by the regional office, the LO
                   transmits the request to the AEC(s), the owner, operator
                   or supervisor of the listed facility, and the original
                   recommending person in the discretionary listing case,
                   asking them to submit their comments on the request for
                   removal and plan for compliance to the LO within 10 days
                   ( Attachment DD ).

                                   -18-

( Day 1-10 )  b.   Requests Filed by the Others.  If the request for removal
                   was filed by some person other than the staff of an EPA
                   regional office, the LO transmits a copy of the request
                   for removal to the AEC(s), the RA, ORC and regional
                   program office, the owner, operator or supervisor of the
                   listed facility, and the original recommending person in
                   the discretionary listing case, asking them to submit
                   their comments on the request for removal and plan for
                   compliance to the LO within 10 days ( Attachment DD ).

( Day 11-25 ) c.   Regional Office Prepares Formal Recommendation.  At the
                   end of 10 days, the LO reviews all comments that have
                   been received, forwards copies of them to the regional
                   office in which the listed facility is located and asks
                   the ORC to prepare and return to the LO within 15 days
                   ( Attachment EE ):

                   (1)  a formal recommendation based on the regional
                   office's assessment of whether the request for removal
                   should be granted or denied in light of the facility's
                   proposed plan for compliance ( Attachment FF );

                   (2)  a memorandum summarizing the supporting
                   documentation for the formal recommendation ( Attachment
                   GG ); and

                   (3)  the written acknowledgement of the Regional
                   Administrator or Deputy Regional Administrator indicating
                   that he or she has reviewed the formal recommendation and
                   submitted any comments on it to the LO.

( Day 26-38 ) d.   LO Drafts Determination.  At the end of the 15-day
                   period, the LO receives the Region's formal
                   recommendation on the request for removal and plan for
                   compliance ( Attachment FF ), and the summary of
                   supporting documentation ( Attachment GG ), confirms that
                   the recommendation has been reviewed by the Regional
                   Administrator or Deputy Regional Administrator, and
                   drafts a determination for the AA's signature
                   ( Attachment HH ).

( Day 38-42 ) e.   Headquarters Review and Comment.  After the draft
                   determination has been prepared ( Attachment HH ), the LO
                   sends it for review and comment, along with the summary
                   of supporting documentation ( Attachment GG ), to:  (1)
                   the Associate Enforcement Counsel ( AEC ) for Air or
                   Water or both; (2) the Director, OCAPO; and (3) the DAA-
                   EOCM-Civil,

                                   -19-

                   or the DAA-OECM-Criminal, or both.  Each office must
                   acknowledge that it has reviewed the document and made
                   any necessary comments before returning the draft
                   determination to the LO.

( Day 43-45 ) f.   Decision by AA.  After the appropriate Headquarters staff
                   have reviewed and commented on the draft determination,
                   and any necessary revisions have been made, the LO
                   prepares a transmittal memorandum ( Attachment JJ ) and
                   one-page briefing memorandum that summarizes:  (i) the
                   history of the case; (ii) the status of the case; (iii)
                   the reasons for the recommended determination; (iv)
                   whether the RA, ORC and regional program office have
                   expressed comments in agreement with the draft
                   determination; and (v) problems or special considerations
                   ( Attachment KK ).  The LO sends the briefing memorandum
                   ( Attachment KK ), the draft determination ( Attachment
                   HH ), and the summary of supporting documentation
                   ( Attachment GG ), to the AA for his or her decision.

                        If an oral briefing is requested, the LO schedules
                   the briefing, arranges for representatives of the AEC(s)
                   and OCAPO to be present, and offers the RA, DRA, ORC and
                   regional program office an opportunity to be present at
                   the briefing in person or by telephone.

                   (1)  AA Grants Removal Based on Plan for Compliance.  If
                        the AA approves the plan for compliance, the LO
                        follows the steps set forth in the Listing
                        Official's Removal Checklist found in Table Two on
                        page 28.

                   (2)  AA Denies Removal.  If the AA does not approve the
                        plan for compliance and denies the request for
                        removal, the LO notifies the owner, operator or
                        supervisor of the facility, the recommending person,
                        AEC(s) and RA, ORC and regional program office, the
                        Director, OCAPO, and the DAA-OECM-Civil and DAA-OECM
                        -Criminal, that the request for removal has been
                        denied and notifies the facility of the opportunity
                        to request, within 30 days, a hearing before a Case
                        Examiner ( Attachment LL ), Sections 15.22(c) and
                        15.23(a).

           4. The Condition Giving Rise to Listing Has Been Corrected.  If
              the request for removal is based on the facility having
              corrected the condition that gave rise to listing, the LO
              follows the procedures described below.

                                   -20-

( Day 1-10 )  a.   Requests Filed by the Regional Office.  If the request
                   for removal was filed by the regional office, the LO
                   transmits the request to the AEC(s), the owner, operator
                   or supervisor of the listed facility, and the original
                   recommending person in discretionary listing cases,
                   asking them to submit their comments on the request for
                   removal to the LO within 10 days ( Attachment MM ).

( Day 1-10 )  b.   Requests filed by Others.  If the request for removal was
                   filed by some person other than EPA regional office
                   staff, the LO transmits a copy of the request for removal
                   to the AEC(s), the RA, ORC and regional program office,
                   the owner, operator or supervisor of the listed facility,
                   and the original recommending person in discretionary
                   listing cases, asking them to submit their comments on
                   the request for removal to the LO within 10 days
                   ( Attachment MM ).

( Day 11-25 ) c.   Region Prepares Formal Recommendation.  At the end of 10
                   calendar days, the LO reviews all comments that have been
                   received, forwards copies of them to the regional office
                   for the Region in which the listed facility is located
                   and asks the ORC to prepare and return to the LO within
                   15 days ( Attachment EE ):

                   (1)  A formal recommendation ( Attachment FF ), based on
                        the regional office's assessment of whether the
                        request for removal should be granted or denied
                        under the policy defining what constitutes
                        correcting the condition giving rise to listing
                        ( Attachment WW ).  The formal recommendation must
                        contain:  (i) a background section that summarizes
                        the history and proposed resolution of the case;
                        (ii) specific factual findings covering all major
                        events in the case and technical tests that support
                        the determination from the date of the original
                        violation to the present time, and all expected
                        events and test results, including any environmental
                        cleanup under a compliance plan approved by EPA
                        ( any consent decree, probation order,
                        administrative order, performance guarantee, or
                        permit evidencing the compliance schedule should be
                        attached to the recommendation ); and (iii) a
                        conclusion setting forth the recommendation.

                                   -21-

                   (2)  A document summarizing the supporting documentation
                        for the recommendation ( Attachment GG ).  The
                        summary of supporting documentation must:  (i)
                        identify the source of all information available for
                        making the determination; (ii) identify all
                        inspections made and state whether they satisfy the
                        policy on independent verification ( Attachment
                        XX ); (iii) identify, in accordance with the policy
                        defining condition, the specific condition that gave
                        rise to listing ( Attachment YY ) and the manner in
                        which the condition has been or is being corrected;
                        (iv) describe the status of the facility's efforts
                        to correct the condition; and (v) ensure that any
                        comments by state or local authorities are
                        reflected; and

                   (3)  The acknowledgement of the Regional Administrator or
                        Deputy Regional Administrator that he or she has
                        reviewed the formal recommendation and summary of
                        documentation and made any necessary comments.

( Day 26-38 ) d.   LO Drafts Determination.  At the end of 15 days, the LO
                   receives the formal recommendation on the request for
                   removal ( Attachment FF ) and the summary of supporting
                   documentation ( Attachment GG ), confirms that the
                   recommendation has been reviewed by the Regional
                   Administrator or Deputy Regional Administrator, notes on
                   the summary of supporting documentation any materials
                   available at Headquarters, and prepares a draft
                   determination for the AA's signature.

( Day 39-42 ) e.   Headquarters Review.  Once the draft determination
                   ( Attachment HH ) has been prepared, it is transmitted,
                   along with the summary of supporting documentation
                   ( Attachment GG ), for review and comment to:  (1) the
                   Associate Enforcement Counsel ( AEC ) for Air, Water or
                   both; (2) the Director, OCAPO; and (3) the DAA-OECM-Civil
                   and DAA-OECM-Criminal.  After each of these individuals
                   has acknowledged reviewing and commenting on the draft
                   determination and summary of supporting documentation,
                   those documents are returned to the LO to make any
                   revisions the LO deems necessary.

                                   -22-

( Day 43-45 ) f.   Decision by AA.  After the appropriate Headquarters staff
                   have reviewed and commented on the draft determination,
                   and any necessary revisions have been made, the LO
                   prepares a transmittal memorandum ( Attachment JJ ), and
                   one-page briefing memorandum that summarizes:  (i) the
                   history of the case; (ii) the status of the case; (iii)
                   the reasons for the recommended determination; (iv)
                   whether the RA, ORC and regional program office have
                   expressed comments in agreement with the draft
                   determination; and (v) problems or special considerations
                   ( Attachment KK ).  The LO sends the briefing memorandum
                   ( Attachment KK ), the draft determination ( Attachment
                   HH ), and the summary of supporting documentation
                   ( Attachment GG ), to the AA for his or her decision.

                        If an oral briefing is requested, the LO schedules
                   the briefing, arranges for representatives of the AEC(s)
                   and OCAPO to be present, and offers the RA, DRA, ORC and
                   regional program office an opportunity to be present at
                   the briefing in person or by telephone.

                   (1)  AA Grants Removal.  If the AA approves the request
                        for removal, the LO follows the steps set forth in
                        the Listing Official's Removal Checklist found in
                        Table Two on page 28.

                   (2)  AA Denies Removal.  If the AA denies the request for
                        removal, the LO notifies the owner, operator or
                        supervisor of the facility, recommending person,
                        AEC(s) and RA, ORC and regional program office, the
                        Director, OCAPO, and the DAA-OECM-Civil and DAA-
                        OECM-Criminal, that the request for removal has been
                        denied.  The LO also notifies the facility of the
                        opportunity to request, within 30 days, a hearing
                        before a CE ( Attachment LL ), Sections 15.22(c) and
                        15.23(a).

           5. Removal Hearing.  The owner, operator or supervisor of a
           listed facility, or the original recommending person in the case
           of a facility listed under the discretionary listing process, may
           file with the LO, within 30 calendar days after the decision of
           the AA denying removal, a written request for a removal hearing,
           Section 15.23(a).

           a. Removal Hearing Not Requested.  If the LO does not receive a
              request for a removal hearing within 30 calendar days after
              the decision of the AA, the LO notifies:  the owner, operator,
              or supervisor

                                   -23-

              of the facility; the original recommending person; the AA; the
              Director, OCAPO; the AEC(s); and the RA, ORC and regional
              program office; that the decision of the AA is final Agency
              action on the request for removal and that any person who may
              make a request for removal may file a new request for removal
              based on new information ( Attachment NN ), Section 15.23(b).

         b.   Removal Hearing Requested.  If the LO receives a request for a
              removal hearing within 30 days after the decision of the AA,
              the LO does the following:

              (1)  AA Designates a Case Examiner.  The AA designates a Case
                   Examiner for the removal hearing ( Attachment OO ),
                   Section 15.24.  The Case Examiner may be any EPA employee
                   who has subject-matter expertise and who was not involved
                   in the underlying enforcement action or listing action
                   ( except that the Case Examiner who served in the listing
                   proceeding involving the facility may serve as Case
                   Examiner in the removal hearing ).  The LO will consult
                   with the AEC(s) to determine appropriate persons to act
                   as Case Examiners in removal hearings.

              (2)  LO Schedules Removal Hearing.  The LO schedules the
                   removal hearing and notifies the owner, operator or
                   supervisor of the facility, the original recommending
                   person, the federal, state or local authority responsible
                   for enforcement of clean air or clean water standards,
                   the Case Examiner, and the removal case team ( see
                   Section IV, page 15 ) of the date, time and place of the
                   removal hearing ( Attachment PP ).

                        That notice letter also informs all parties of their
                   obligation to serve on all other parties copies of all
                   documents which they intend to submit at the removal
                   hearing at least one week prior to the removal hearing.
                   It is the responsibility of the LO to attempt to arrange
                   the timing and location of the listing proceeding so that
                   it is convenient for all parties to attend.

              (3)  LO Obtains Court Reporter.  The LO retains the services
                   of a court reporter, Section 15.24(a)(2), paid for by
                   EPA.

                                   -24-

              (4)  Removal Hearing Held.  The removal hearing is conducted
                   in accordance with Sections 15.24(a-c).  EPA will be
                   represented at the removal hearing by the EPA regional or
                   Headquarters attorney responsible for the underlying
                   enforcement action.

              (5)  LO Obtains Decision of CE.  The Case Examiner issues his
                   or her written decision on whether to grant the request
                   for removal and files it with the LO as soon as
                   practicable with a target of filing the decision no later
                   than 30 days after the conclusion of the removal hearing,
                   and any supplementation of the record allowed by the Case
                   Examiner, Section 15.24(c).

           c. LO Sends Notice of CE's Decision.  The LO is responsible for
              sending written notice of the Case Examiner's decision to the
              owner, operator, or supervisor of the facility, the original
              recommending person, the AEC(s), the RA, ORC and regional
              program office the federal, state or local authority
              responsible for enforcement of clean air or clean water
              standards.

              (1)  If the Case Examiner grants removal, the LO follows the
                   steps set forth in the Listing Official's Removal
                   Checklist found in Table Two on page 28.

              (2)  If the Case Examiner denies removal, the LO notifies the
                   owner, operator or supervisor of the facility, the
                   original recommending person, the AEC(s), the RA, ORC and
                   regional program office and the federal, state or local
                   authority responsible for the enforcement of clean air or
                   clean water standards of the decision and advises the
                   facility of the opportunity to request the Administrator
                   to review the Case Examiner's decision ( Attachment QQ ),
                   Section 15.24(d), if a written request for such review is
                   filed with the LO within 30 days after the date of the
                   Case Examiner's decision, Section 15.25(a).

         d.   Administrator's Review Not Requested.  If the LO does not
              receive a written request for review within 30 days after the
              date of the Case Examiner's decision, the LO sends a notice to
              the owner, operator, or supervisor of the facility, the

                                   -25-

              original recommending person, the DAA-OECM-Civil and DAA-OECM-
              Criminal, the Director, OCAPO, the AEC(s), the RA, ORC and
              regional program office, and the federal, state or local
              authority responsible for the enforcement of clean air or
              clean water standards, informing them that the Case Examiner's
              decision stands as final Agency action on the request for
              removal, Section 15.25(c), and that any person who may file a
              request for removal may file a new request for removal based
              on new information ( Attachment RR ).

         e.   Administrator's Review Requested.  If the LO receives a timely
              written request to have the decision of the Case Examiner
              reviewed by the Administrator:

              (1)  The LO Transmits the Request for Administrator's Review
                   to ORC.  The LO transmits a copy of the request for
                   Administrator's review to ORC ( Attachment SS ).  ORC is
                   responsible for obtaining comments from the AEC(s) and
                   the original recommending person ( if the recommendation
                   to list was filed by somebody other than EPA ), and any
                   federal, state, or local authority with responsibility
                   for the enforcement of clean air or clean water
                   standards.  Within 14 days of receiving the copy of the
                   request for Administrator's review, ORC must prepare and
                   return to the LO a reply brief stating the Agency's
                   response to the facility's claims in the request for
                   Administrator's review.  Generally, the attorney who
                   represented EPA at the removal hearing should prepare the
                   reply brief.

              (2)  LO Transmits Request to the Administrator.  After the
                   reply brief has been received, the LO transmits to the
                   Administrator:  (i) the Case Examiner's decision; (ii)
                   the request for review; (iii) the reply brief; (iv) the
                   comments received; and (v) the entire record of the
                   removal action ( Attachment TT ).

              (3)  The Administrator Reviews the CE's Decision.  The
                   Administrator reviews the Case Examiner's decision based
                   on the record of the removal hearing considered as a
                   whole, and issues a final decision as soon as
                   practicable, Section 15.25(b).  The Administrator's
                   decision is final Agency action, Section 15.25(b).

                                   -26-

         f.   The LO Obtains the Administrator's Decision.  The
              Administrator files his decision with the LO following review
              of the Case Examiner's decision.  Once filed with the LO, the
              Administrator's decision is final Agency action on the request
              for removal and the LO does the following:

              (1)  If the Administrator affirms the Case Examiner's decision
                   denying removal, the LO notifies the owner, operator, or
                   supervisor of the facility, the original recommending
                   person, the AEC(s), the RA, ORC and regional program
                   office, and the federal, state or local authority
                   responsible for the enforcement of clean air or clean
                   water standards, that the Administrator's decision
                   affirming the Case Examiner stands as final Agency action
                   denying the request for removal, Section 15.25(b), and
                   that any person who may file a request for removal may
                   file a new request for removal based on new information
                   ( Attachment UU ), Section 15.25(d).

              (2)  If the Administrator reverses the Case Examiner and
                   grants the request for removal, the LO follows the steps
                   set forth in the Listing Official's Removal Checklist
                   found in Table Two on page 28.

V.  DISTRIBUTION OF THE LIST.

    On or about February 1 and August 1 of each year, the LO publishes an
updated List in the Federal Register ( Attachment VV ), Section 15.40 by
following the procedures below.

    A.   The LO obtains EPA Form 2340-15, FEDERAL REGISTER TYPESETTING
         REQUEST, from the LEPB supply and completes Items 1, 3, 7, 8, 9, 11
         and 13.

         1.   The LO estimates the number of columns needed ( Item 8 ) using
              the following formula:  two double-spaced typed pages equals
              one column.

         2.   The LO estimates the cost ( Item 9 ) by using the following
              formula:  one column costs $125.00.

    B.   The LO submits the completed Form 2340-15 to the OECM Management
         Operations Branch.

    C.   The LO delivers the signed original and three copies of the Federal
         Register Notice to the EPA Federal Register Office with the Form
         2340-15 Typesetting Request attached.

Attachments

                                   -27-

                                 TABLE ONE

            LISTING OFFICIAL'S DISCRETIONARY LISTING CHECKLIST

    The Listing Official must perform the following tasks once final Agency
action on a recommendation for discretionary listing has resulted in the
decision to place a facility on the List of Violating Facilities ( the
List ):

    1.   Place the facility on the List, Section 15.12(d);

    2.   Notify the owner, operator, or supervisor of the facility, and the
recommending person that the facility has been listed and of the effective
date of listing ( Attachment S ), section 15.16(b);

    3.   Notify the AEC(s) and the RA, ORC and regional program office of
the listing and its effective date and that the facility will automatically
be removed from the List after one year if it was listed under Section
15.11(a)(4), (a)(5) or (a)(6) unless within that period the LO is notified
that a basis for listing under Section 15.11(a)(1), (a)(2), or (a)(3) has
occurred ( Attachment T );

    4.   Publish a notice in the Federal Register ( Attachment B ), Section
15.16(c);

    5.   Notify GSA to add the facility to GSA's Consolidated List of
Debarred, Suspended, and Ineligible Contractors ( Attachment C );

    6.   Notify all federal agencies with major assistance responsibilities,
identified on the Assistance Agencies List ( Attachment D ), that the
facility is no longer eligible for federal assistance programs ( Attachment
E ); and

    7.   Provide OPA with the information necessary to prepare a press
release or press advisory on the listing action ( Attachment F ).

                                   -28-

                                 TABLE TWO

                   LISTING OFFICIAL'S REMOVAL CHECKLIST

    The Listing Official must perform the following tasks once final Agency
action has resulted in a decision to remove a facility from the List of
Violating Facilities ( the List ):

    1.   Remove the facility from the List, Sections 15.20 or 15.21(a)-(b);

    2.   Notify the owner, operator or supervisor of the facility,
recommending person, AEC(s) and the RA, ORC and regional program office of
the effective date of removal ( Attachment BB ), Section 15.27;

    3.   Publish in the Federal Register a notice that the facility has been
removed from the List ( Attachment B ), Section 15.27;

    4.   Notify the General Services Administration ( GSA ) to remove the
facility from GSA's Consolidated List of Debarred, Suspended, and Ineligible
Contractors ( Attachment C );

    5.   Remove the case from the listing docket; and

    6.   Notify all federal agencies with major assistance responsibilities,
identified on the Assistance Agencies List ( Attachment D ), that the
facility is once again eligible to receive federal assistance ( Attachment
E ).

                            LIST OF ATTACHMENTS

#   Title                                                       Location
                                                                Discussed

A   Model Notice Letter to a Facility Listed Under Mandatory    4
         Listing

B   Sample Federal Register Notice Publishing Changes to the    4, 27, 28
         List As They Occur

C   Model Letter to GSA Advising of Changes to the List         4, 27, 28

D   List of Federal Agencies With Major Assistance              4, 27, 28
         Responsibilities

E   Model Letter to Federal Agencies With Assistance            4, 27, 28
         Responsibilities Advising of Changes to the List

F   Model Memorandum Providing Information for Press Office     5, 27
         Preparation of a Press Release on a Listing Action

G   Model Memorandum Asking for Comments on Recommendation to   6
         List

H   Model Request for Additional Information from Recommending  7
         Person

J   Model Memorandum Briefing the Assistant Administrator on    7
         the Basis for Recommendation to List

K   Model Statement by Assistant Administrator Declining to     7, 8
         to Proceed With Listing Action

L   Model Notice Letter That a Recommendation to List Has Been  8
         Filed and Declined

M   Model Letter Notifying Facility of Proposed Listing and     8
         Opportunity to Request Listing Proceeding

N   Model Memorandum Transmitting Listing Recommendation to     8
         the Region Requesting Documentation

O   Sample Summary of Supporting Documentation for              8, 9
         Recommendation to List

P   Sample Discretionary Determination to List                  9

List of Attachments p. 2

#   Title                                                       Location
                                                                Discussed

Q   Model Memorandum Transmitting Draft Determination to List   9
         from Listing Official to Assistant Administrator

R   Sample Briefing Document on Recommendation to List Under    9
         the Discretionary Listing Process

S   Model Notice Letter of Discretionary Listing and Final      27
         Agency Action

T   Model Memorandum Notifying Case Removal Team of             27
         Discretionary Listing

U   Model Notice Letter that Recommendation to List Has been    10
         Denied

V   Model Designation of Case Examiner for Listing Proceeding   10

W   Model Notice Letter of Date, Time and Location of Listing   11
          Proceeding

X   Model Notice Letter of Case Examiner's Decision in a        12
         Listing Proceeding

Y   Model Memorandum Asking the Region to Draft a Reply Brief   12
         Responding to a Request for Review

Z   Model Memorandum Transmitting to the General Counsel a      13
         Request for Review of the Case Examiner's Decision
         in a Listing Proceeding

AA  Model Notice Letter of General Counsel's Decision           13
         Reviewing the Case Examiner's Decision to List

BB  Model Notice Letter of Effective Date of Removal            28

CC  Model Letter Acknowledging Receipt of Removal Request       17

DD  Model Memorandum Requesting Comments on Request for         17, 18
         Removal

EE  Model Request to Region to Prepare Formal Recommendation    18, 20
         on Request for Removal

FF  Sample Formal Recommendation from Region on Request to      18, 20, 21
         Remove a Facility from the List of Violating
         Facilities

GG  Sample Summary of Supporting Documentation for Removal      18, 19, 21,
         Request                                                22

List of Attachments p. 3

#   Title                                                       Location
                                                                Discussed

HH  Sample Determination to Remove a Facility from the List     18, 19, 21,
                                                                22

JJ  Model Memorandum Transmitting Removal Request and Proposed  19, 22
         Determination from the Listing Official to the
         Assistant Administrator

KK  Model Briefing Outline on Request for Removal               19, 22

LL  Model Notice of Assistant Administrator's Decision Denying  19, 22
         Removal Request

MM  Model Memorandum Asking for Comments on Request for         20
         Removal

NN  Model Notice Letter of Assistant Administrator's Decision   23
         Denying Removal

OO  Model Designation of Case Examiner for Removal Hearing      23

PP  Model Notice Letter of Date, Time and Location of Removal   23
         Hearing

QQ  Model Notice Letter of Case Examiner's Decision in          24
         Removal Hearing

RR  Model Notice That the Decision of the Case Examiner is      25
         Final Agency Action

SS  Model Memorandum Asking the Regional Office to Draft Reply  25
         Brief Responding to Request for Administrator's
         Review

TT  Model Memorandum Transmitting to the Administrator a        25
         Request for Review

UU  Model Notice of Determination of Administrator on Review    26
         of the Case Examiner's Decision

VV  Sample Federal Register Notice Published Twice Yearly       26

WW  Policy on Correcting the Condition Giving Rise to Listing   1, 20

XX  Policy on Independent Verification that Requirements for    1, 21
         Removal Have Been Met in Mandatory Listing Cases

YY  Definition, for Purposes of Removal, of the "Condition"     1, 21
         That Gives Rise to Mandatory Listing

ZZ  40 CFR Part 15 ( 50 Fed. Reg. 36188, September 5, 1985 )    1, 2

                                                      Attachment WW

MEMORANDUM                             October 8, 1987

SUBJECT: Policy on Correcting the Condition Giving Rise to Listing Under the
         Contractor Listing Program

FROM:    Thomas L. Adams, Jr.
         Assistant Administrator for Enforcement
              and Compliance Monitoring

TO:      Assistant Administrator for Air and Radiation
         Assistant Administrator for Water
         General Counsel
         Inspector General
         Regional Administrators, Regions I-X
         Regional Counsels, Regions I-X

ISSUE PRESENTED:  What constitutes correcting the condition giving rise to
listing within the meaning of 40 CFR Sections 15.20 and 15.21.

BACKGROUND:  The Environmental Protection Agency ( EPA ) is provided
authority under Section 306 of the Clean Air Act ( CAA ), 42 USC Section
7606, Section 508 of the Clean Water Act ( CWA ), 33 USC Section 1368,
Executive Order 11738 and 40 CFR Part 15 ( 49 Fed. Reg. 30628 ) to prohibit
any facility owned, leased or supervised by a person convicted of violating
Section 113(c)(1) of the Clean Air Act, 42 USC Section 7413(c)(1), or
Section 309(c) of the Clean Water Act, 33 USC Section 1319(c), or found to
be a source of continuing or recurring CAA or CWA violations despite
previous enforcement actions, from receiving any federal contract or
subcontract.  The prohibition against the use of such facilities continues
in the case of a listing action resulting from a criminal conviction "until
the Administrator certifies that the condition giving rise to such
conviction has been corrected."  42 USC Section 7606, 33 USC Section 1368.

    This statutory requirement is implemented by regulations requiring the
Assistant Administrator for Enforcement and Compliance Monitoring, as
delegatee of the Administrator, to certify that the condition giving rise to
listing has been corrected, see 40 CFR Sections 15.20 and 15.21(a)(2),
before a facility may be removed

                                                      Attachment WW, p. 2

                                     2

from the EPA List of Violating Facilities ( the List ).  1/

  1/ The Contractor Listing Program is composed of two parts:  (1) mandatory
    listing pursuant to 40 CFR Section 15.10 which occurs automatically upon
    conviction under Section 113(c)(1) of the Clean Air Act or Section
    309(c) of the Clean Water Act and (2) discretionary listing pursuant to
    40 CFR Section 15.11 based on continuing or recurring noncompliance with
    clean air or clean water standards despite previous enforcement actions.

    A facility listed under the mandatory listing program may only obtain
    removal from the list on the basis of correcting the condition which
    gave rise to listing.  A facility listed under the discretionary listing
    program may be removed from the List by correcting the condition giving
    rise to listing as well as other means.  Except where otherwise
    indicated, the policies contained in this document apply to requests for
    removal following mandatory or discretionary listing.

However, the statute and its legislative history provide no definitive
guidance on how that phrase should be interpreted, and the question is not
addressed in the regulations.  The legislative histories of the Clean Water
Act and Clean Air Act provide that a purpose of the contractor listing
program is to ensure that "the Federal Government will not patronize or
subsidize polluters through its procurement practices and policies."  S.
Conference Rep. No. 1236 ( to accompany S. 2770, the senate version of the
Clean Water Act ), 92nd Congress, 2d Session, reprinted in 1972 US Code
Cong. & Ad. News 3776, 3824.  The regulations provide:

         "It is the policy of the Federal Government to improve and enhance
         environmental quality.  This regulation is issued to ensure that
         each agency in the Executive Branch of the Federal Government that
         is empowered to enter into contracts for the procurement of goods,
         materials or services or to extend Federal assistance by way of
         grant, loan, or contract undertakes such procurement and assistance
         activities in a manner that will result in effective enforcement of
         the Clean Air Act ... and the Clean Water Act ... and does not
         favor firms where production costs may lower due to noncompliance."

         40 CFR Section 15.1.

    In addition to the policies cited above, implementation of the
contractor listing program should be carried out in a manner that achieves
the following three goals:  (1) compliance with environmental regulations
and swift resolution of environmental problems; (2) fair and equitable
treatment of the regulated community; and (3) deterrence.  Furthermore, the
administrative challenges associated with the program can be exacerbated or

                                                 Attachment WW, p. 3

                                     3

reduced depending on the procedures EPA follows to determine if a facility
is entitled to removal from the List.  2/

  2/ As the legislative history to Section 508 of the Clean Water Act
    acknowledged:  "The effectiveness of this section would depend on fast,
    accurate dissemination of information.  All Federal agencies would have
    to be rapidly apprised of any abatement order or conviction which would
    bar a facility from eligibility for Federal contracts.  The
    Administrator would also have to act expeditiously to certify that a
    facility had achieved compliance, and notify all Federal agencies of
    that fact.  Delays in reporting such information, leading to inaccurate
    public disclosures, would quickly render this section unworkable."  S.
    Rep. No. 414 ( to accompany S. 2770, the senate version of the Clean
    Water Act ), 92nd Congress, 2d Session, reprinted in 1972 US Code Cong.
    & Ad. News 3668, 3749-3750.

PURPOSE:  Two approaches have been proposed for defining what would be
necessary to certify that the condition giving rise to listing has been
corrected and grant a facility's request for removal from the List following
mandatory or discretionary listing.  The Physical Correction Approach
defines correcting the condition giving rise to listing as requiring the
facility to come into compliance with the statutory and regulatory
provisions whose violation led to listing.  The Scheduled Correction
Approach defines correcting the condition giving rise to listing as
requiring the facility to be subject to an independently enforceable
agreement to perform all corrective action in accordance with a schedule for
compliance established by EPA.

    EPA has not formally adopted any definition of what constitutes
correcting the condition giving rise to listing.  To date, the listing
program has generally required Physical Correction in determining whether a
facility is entitled to be removed from the List.  However, the approaches
identified in this policy document are not mutually exclusive.  Formal
adoption of the Physical Correction Approach and Scheduled Correction
Approach would give EPA greater flexibility in carrying out the contractor
listing program and will better permit EPA to achieve its broader goals of
enhancing compliance and improving the environment.

    The purpose of this policy document is to present these two approaches,
identify the rationale supporting each approach, establish criteria for
applying each, and identify four nonexclusive mechanisms for meeting the
requirements of the second approach.  The policies established in this
policy document would apply to requests for removal filed following
mandatory or discretionary listing.

CRITERIA:  Any definition of what is necessary to certify that the condition
giving rise to mandatory listing has been corrected must provide for the
following:

                                                 Attachment WW, p. 4

                                     4

    *    Enforceability - There must be adequate incentives for the facility
         to correct the condition and there must be an efficient means for
         EPA, at its sole discretion, to enforce the requirement to take
         corrective action.

    *    Verifiability - There must be sufficient credible and verifiable
         information generated by a source other than the violator to permit
         EPA to make an independent judgement that the condition has been
         corrected.

    *    Certainty - There must be sufficient assurance that the facility
         will be in compliance with the statutory and regulatory
         requirements associated with the conviction to permit the Assistant
         Administrator for Enforcement and Compliance Monitoring to certify
         that the condition that gave rise to listing has been corrected.

    *    Certification by the Violator - A responsible executive of the
         facility must certify, subject to the sanctions of 18 USC Section
         1001, that the condition has been corrected.

The two approaches, and manner in which they meet these criteria, are
described below.

PHYSICAL CORRECTION APPROACH:  In order to correct the condition that gave
rise to listing, a facility must demonstrate that it is presently in
compliance with the specific statutory and regulatory requirements which
were the subject of the criminal conviction or judicial order in the
underlying criminal or civil enforcement action.

Discussion:  The Physical Correction Approach would require a listed
facility to come into compliance with the statutory and regulatory
requirements whose violation led to listing before a request for removal
would be granted.  This approach provides enforceability by conditioning
removal from the List on the completion of all corrective action.
Verifiability is provided through an inspection of the facility by EPA, the
state or an independent, credible third-party.  Certainty that the facility
will be in compliance with the statutory and regulatory requirements
associated with the violation is ensured since compliance must be
demonstrated before the request for removal is granted.  Finally, an officer
of the facility will be required to submit a written statement, subject to
the criminal sanctions provided by 18 USC Section 1001, certifying that all
corrective action has been completed before removal is granted.

SCHEDULED CORRECTION APPROACH:  In order to correct the condition that gave
rise to mandatory listing, a facility must be subject to an independently
enforceable obligation to take all steps necessary to bring the facility
into compliance with the specific statutory and regulatory requirements
which were the subject of the criminal conviction or judicial order in the
underlying criminal or civil enforcement action and to carry out any
additional

                                                 Attachment WW, p. 5

                                     5

corrective action which EPA may identify.  During the period that the
facility is engaged in scheduled correction, it must use reasonable interim
control practices identified by EPA to reduce discharges.  If the facility
fails to come into compliance according to the schedule set by EPA, the
Agency, at its sole discretion, may automatically place the facility back on
the List.

Discussion:  The Scheduled Correction Approach would permit EPA to grant a
facility's request for removal from the List if the facility's future
compliance is ensured by an appropriate independently enforceable obligation
to carry out the necessary corrective action identified by EPA.  It allows
earlier removal from the List with compliance ensured by an enforceable
obligation other than the listing sanction plus EPA's right to automatically
relist the facility immediately on the basis of the Agency's determination
that the facility has not met the compliance schedule.

    This approach can be implemented using alternative mechanisms which
impose an independently enforceable obligation on the facility to complete
all corrective action.  Four nonexclusive options for implementing this
approach are described below.  This policy does not prefer the use of one
mechanism over another and no inference should be drawn from the order in
which the options are listed.  EPA retains the sole discretion to grant
removal under the Scheduled Correction Approach and the sole discretion to
determine which mechanism can be used to meet the requirements of the
Scheduled Correction Approach in each case.

CONSENT DECREE MECHANISM:  If a facility is subject to a judicially
enforceable federal or state consent decree containing an acceptable
compliance schedule and the facility acknowledges EPA's right to
automatically place it back on the List for failing to meet that schedule,
EPA will have sufficient assurance of the facility's future compliance to
certify that the condition giving rise to mandatory listing has been
corrected.

Discussion:  The contempt power of the court and EPA's right to
automatically relist the facility provide the means for enforcing the
facility's obligation under the consent decree to complete corrective
action.  The court's contempt powers and EPA's relisting rights also provide
certainty that all corrective action will be accomplished.  Verifiability is
provided through an appropriate inspection and an officer of the facility
must submit a written statement, subject to 18 USC Section 1001, certifying
that all corrective action has been taken before EPA will join in a motion
to dissolve the consent decree.  If the consent decree is modified without
EPA approval, the Agency will not be bound by the modification and will
retain the right to relist the facility according to the terms originally
agreed upon by EPA.

                                                 Attachment WW, p. 6

                                     6

PROBATION ORDER MECHANISM:  If, in cases involving a criminal conviction, an
acceptable compliance schedule is included in the probation order issued by
the court and the facility acknowledges EPA's right to automatically place
it back on the List for failing to meet that schedule, EPA will have
sufficient assurance of the facility's future compliance to certify that the
condition giving rise to mandatory listing has been corrected.

Discussion:  The contempt power of the court and EPA's right to
automatically relist the facility provide the means for enforcing the
defendant's obligation to complete the corrective action embodied in the
court's probation order and provide certainty that all corrective action
will be completed.  Verifiability is provided by inspections to determine if
the defendant is complying with the terms of probation and the defendant or
an appropriate officer of the facility must submit a written statement,
subject to 18 USC Section 1001, or make an oral statement in open court
while subject to sanctions for false statement equivalent to 18 USC Section
1001, certifying that all corrective action has been taken before the
defendant is released from probation.  If the terms of probation are
modified without EPA approval, the Agency will not be bound by those
modifications in carrying out the listing program and will retain the right
to relist the facility according to the terms originally agreed upon by EPA.

ADMINISTRATIVE ORDER PLUS PERFORMANCE GUARANTEE MECHANISM:  If a facility is
subject to a federal or state Administrative Order that contains an
acceptable compliance schedule, the facility provides an acceptable
performance guarantee and the facility acknowledges EPA's right to
automatically place it back on the List for failing to meet the compliance
schedule, EPA will have sufficient assurance of the facility's future
compliance to certify that the condition giving rise to mandatory listing
has been corrected.

Discussion:  This approach provides enforceability through judicial
enforcement of the administrative order and EPA's right to automatically
relist the facility.  Certainty that the corrective action will be completed
is provided by a performance guarantee, such as a performance bond, that
makes a third party responsible for completing the corrective action
identified in the administrative order.  Verifiability is provided through
appropriate inspections and an officer of the facility will be required to
submit a written statement, subject to 18 USC Section 1001, certifying that
all corrective action has been completed before the administrative order
will be dissolved.  If the administrative order is modified without EPA
approval, the Agency will not be bound by those modifications in carrying
out the listing program and will retain the right to relist the facility
according to the terms originally agreed upon by EPA.

                                                 Attachment WW, p. 7

                                    -7-

PERMIT AUTHORITY MECHANISM:  If a compliance schedule is included in a
permit issued by EPA or the State, the facility provides an acceptable
performance guarantee, and the facility acknowledges EPA's right to
automatically place it back on the List for failing to meet the compliance
schedule, EPA will have sufficient assurance of the facility's future
compliance to certify that the condition giving rise to mandatory listing
has been corrected.

Discussion:  Enforceability is provided through the ability to rescind the
permit and relist the facility.  Certainty is provided through the
performance guarantee.  Verifiability is ensured through the normal
regulatory inspection schedule.  An officer of the facility will be required
to submit a written statement, subject to 18 USC Section 1001, certifying
that the corrective action has been completed before EPA will modify the
permit to terminate EPA's right to relist the facility.  If the permit is
modified without EPA approval, the Agency will not be bound by those
modifications in carrying out the listing program and will retain the right
to relist the facility according to the terms originally agreed upon by EPA.

APPLICABILITY:  The policies and procedures established in this document are
intended solely as guidance for government personnel.  They are not
intended, and cannot be relied upon, to create any rights, substantive or
procedural, enforceable by any party in litigation with the United States.
EPA reserves the right to act at variance with these policies and procedures
and to change them at any time without public notice.

                                                 Attachment XX

                              October 8, 1987

                    CONTRACTOR LISTING POLICY STATEMENT

SUBJECT: Independent verification that requirements for removal have been
         met in mandatory listing cases.

QUESTION PRESENTED:  Under what circumstances should the Environmental
         Protection Agency ( EPA ) require independent verification that the
         condition giving rise to mandatory listing has been corrected
         before granting a request to remove a facility from the List of
         Violating Facilities ( the List )?  What form should that
         verification take?

ANSWER PRESENTED:  A presumption exists that the Agency will always require
         independent verification that the facility has corrected the
         condition giving rise to the listing in every mandatory listing
         case prior to granting a request for removal.  That verification
         can take the form of an appropriate inspection by EPA, a State, or
         an independent, credible third-party.

DISCUSSION AND RATIONALE:  The mandatory listing program of Section 306 of
the Clean Air Act ( 42 USC Section 7606 ) and Section 508 of the Clean Water
Act ( 33 USC Section 1368 ), as implemented by the regulations in 40 CFR
Part 15, provides that facilities owned, leased or supervised by a person
convicted of violating Section 113(c)(1) of the Clean Air Act, 42 USC
Section 7413(c)(1), or Section 309(c) of the Clean Water Act, 33 USC Section
1319(c), shall not be utilized in the performance of any nonexempt federal
contract or subcontract.  The prohibition against the use of such facilities
continues until the Assistant Administrator for Enforcement and Compliance
Monitoring certifies that "the condition giving rise to mandatory listing
has been corrected."

    In order to determine if a facility is entitled to be removed from the
List, EPA will require information showing that the facility has corrected
the condition that gave rise to listing.  It is the policy of EPA that this
information must include some form of independent and credible verification
of the corrective action performed by the facility.  Verification will
normally take the form of a federal, state or third-party audit or
evaluation of the facility where the violation occurred to ensure that the
facility is operating in compliance with the specific statutory and
regulatory requirements involved in the listing action.

    It is recognized that there may cases in which on-site verification is
not appropriate.  In those situations, some other credible form of
verification that the facility has corrected the condition that gave rise to
mandatory listing could be substituted.

    This policy recognizes that EPA will accept independent, credible
verification provided by third parties, and contemplates that inspections
could be performed by officials of the State in which the facility is
located or by independent contractors.

                                                 Attachment XX, p. 2

                                    -2-

However, EPA retains the right, at its sole discretion, to accept or reject,
in whole or in part, information offered in support of a request for removal
and to determine the credibility of that information.  Before an inspection
or other form of verification supplied by a third-party would be accepted by
EPA as the sole basis for granting a request for removal, the regional
office for the Region in which the facility is located would have to be
satisfied that the verification was credible and endorse or otherwise concur
in all of the findings of the third party.

    The policies and procedures established in this document are intended
solely as guidance for government personnel.  They are not intended, and
cannot be relied upon, to create any rights, substantive or procedural,
enforceable by any party in litigation with the United States.  EPA reserves
the right to act at variance with these policies and procedures and to
change them at any time without public notice.

CROSS REFERENCES:

Section 306 Clean Air Act, 42 USC Section 7606
Section 508 Clean Water Act, 33 USC Section 1368
Section 113(c)(1) Clean Air Act, 42 USC Section 7413(c)(1)
Section 309(c) Clean Water Act, 33 USC Section 1319(c)
40 CFR Part 15
Contractor Listing Protocols
Policy on Correction ( DATE )

                                                 Attachment YY

                    CONTRACTOR LISTING POLICY STATEMENT

SUBJECT: Definition, for purposes of removal, of the "condition" that gives
         rise to mandatory listing.

QUESTION PRESENTED:  What constitutes the "condition" that must be corrected
         in order for a listed facility to qualify for removal from the
         mandatory list?

ANSWERER PRESENTED:  The "condition" giving rise to mandatory listing is
         defined as:  (1) the specific statutory violation(s) alleged in the
         indictment or information for which a conviction was obtained,
         taking into consideration the regulatory context of the violation;
         and (2) is presumed to include environmental harm resulting from
         the violation only when that harm is (a) readily identifiable and
         demonstrable; (b) directly susceptible to remedial action; (c)
         demonstrably linked to the violation(s) which gave rise to the
         listing; and (d) segregable from other environmental damage not
         related to the instant violation(s).

DISCUSSION AND RATIONALE:  The mandatory listing program of Section 306 of
the Clean Air Act ( 42 USC Section 7606 ) and Section 508 of the Clean Water
Act ( 33 USC Section 1368 ), as implemented by the regulations in 40 CFR
Part 15, provides that facilities owned, leased or supervised by a person
convicted of violating Section 113(c)(1) of the Clean Air Act, 42 USC
Section 7413(c)(1), or Section 309(c) of the Clean Water Act, 33 USC Section
1319(c), shall not be utilized in the performance of any nonexempt federal
contract or subcontract.  This prohibition continues until the Administrator
"certifies that the condition giving rise to such conviction has been
corrected."  1/

  1/ The term "conviction" is not explicitly defined in the statute or
    regulations.

    This statutory requirement is implemented in the regulations by
requiring the Assistant Administrator for Enforcement and Compliance
Monitoring, as the delegatee of the Administrator, to certify that the
"condition giving rise to mandatory listing has been corrected," before a
facility can be removed from the List.

    The Agency is adopting an interpretation of the term "condition" that
will ensure that the subject matter of a removal action extends only to that
conduct for which a conviction was obtained.  While one could interpret the
statutes to empower the contractor listing program to require a facility to
comply with all environmental laws or with all requirements of the CAA or

                                                 Attachment YY, p. 2

                                    -2-

CWA, the Agency will apply the contractor listing remedy:  (1) to ensure
that the specific violative activities that gave rise to the listing have
ceased, and (2) to ensure that the facility has fully embraced the
regulatory program implemented under the statutory authorities relevant to
the violation.

    While the statutes identify what acts or failures to act give rise to
criminal violations, those violations must be viewed in the context of the
regulatory program which governs the facility's conduct.  This is necessary
for two reasons.  First, in many cases, a statutory violation will be based
on the facility's failure to comply with a specific regulatory requirement.
Second, it may often be necessary to consider how a violation fits into the
overall regulatory program to understand the exact nature of the
violation(s) and thus the "condition" which must be corrected.
Consequently, the Agency must determine on a case-by-case basis the specific
action necessary to correct the condition giving rise to mandatory listing.

    The statutes can be understood to empower the Agency to conclude that in
all instances the "condition" giving rise to mandatory listing could include
environmental harm that resulted from the violation.  The Agency has
determined, however, that for current purposes, the "condition" giving rise
to mandatory listing will be presumed to include environmental harm only
where existing environmental degradation can be linked directly to the
violation(s).  Remedial action to ameliorate the environmental harm caused
by a violation may be a prerequisite to removal from the List in cases where
environmental harm is (1) readily identifiable and demonstrable; (2)
directly susceptible to remedial action; (3) demonstrably linked to the
violation(s) which gave rise to the listing; and (4) segregable from other
environmental damage not related to the instant violation(s).

    The policies and procedures established in this document are intended
solely as guidance for government personnel.  They are not intended, and
cannot be relied upon, to create any rights, substantive or procedural,
enforceable by any party in litigation with the United States.  EPA reserves
the right to act at variance with these policies and procedures and to
change them at any time without public notice.

CROSS REFERENCES:

Section 306 Clean Air Act, 42 USC Section 7606
Section 508 Clean Water Act, 33 USC Section 1368
Section 113(c)(1) Clean Air Act, 42 USC Section 7413(c)(1)
Section 309(c) Clean Water Act, 33 USC Section 1319(c)
40 CFR Part 15
Contractor Listing Protocols
Policy on Correction ( DATE )
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