PETROLEUM CLEANUP PREAPPROVAL PROGRAM SOP UPDATE HIGHLIGHTS Florida Department of Environmental Protection February 16, 2012 Charles T. Williams Environmental.

PETROLEUM CLEANUP PREAPPROVAL PROGRAM SOP UPDATE HIGHLIGHTS

Florida Department of Environmental

Protection

February 16, 2012

Charles T. WilliamsEnvironmental AdministratorPetroleum Cleanup Section OneBureau of Petroleum Storage Systems

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PETROLEUM CLEANUP PREAPPROVAL PROGRAM SOP

UPDATE HIGHLIGHTS

The last Preapproval Program SOP update was in October 2008

The effective date of next SOP update is anticipated in March/April 2012

Significant SOP changes fall under the categories: • Administrative & Accounting• Compensation & Price Schedules• Subcontractors & Vendors• Technical Issues & Deliverables• Miscellaneous Procedures

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ADMINISTRATIVE & ACCOUNTING Invoicing Guidance & Checklist (Section 6.7)• Updated text and Appendix B.3 - Invoice

Checklist for current F&A and DFS requirements• Removed notarization requirement from

Contractor Release of Claim• Added exemption to 1% MFMP transaction fee

and copy of MFMP approval form in Appendix D.3• Added reference and link to:

• MFMP web site for State vendor registration• DFS web site for registration of Substitute FormW-9• DFS web site for vendor payment history• DEP web site for work order and invoice information

• Added new example Irrevocable Assignment and Transfer of Account Receivable Form in Appendix B.3

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ADMINISTRATIVE & ACCOUNTING Capital Equipment Property Reporting

& Capitalization Forms (Appendix G.3)• New forms break out treatment system cost

into vendor cost, contractor markup, total cost, DEP cost share (%) and DEP cost to facilitate the BF&A reporting requirements

• Prorate tax & shipping into vendor cost across multiple forms, if applicable

Audits (Section 6.6.5) • Per Fla. Dept. of State General Records Schedule

GS1-SL, supporting contractor records required for 5 years after final payment for work order or longer to match contractor’s retention schedule or Federal retention schedule if Federal funds used

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ADMINISTRATIVE & ACCOUNTING Access to Public Records (Section

3.5.6) • New, reflects existing provision in WO terms &

conds• All documents, reports, correspondence,

invoices, billings, and other written or electronic records related to a preapproval WO are considered public records

• Per Chapter 119, F.S., contractors are required to maintain and allow unrestricted access to such public records

• Special requirements for professional land surveys, maps & tables, and as-built drawings (see section 6.4.5)

Scanner Sensitivity (sections 3.4 & 3.5)

• Use dark colored ink (excluding purple) and avoid colored highlighting

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COMPENSATION & PRICE SCHEDULES Fixed Cost Templates vs. Maximum Compensation Schedules (Sections 5.5 & 5.8)• Fixed Cost Templates, Appendix A.1

• Personnel Categories, Bare Labor Rates & Multipliers• Defined Scopes of Work (71)• Equipment Kits (18)• Mobilization & Per Diem• Contractor Markup (%) & General SA Report (%)

• Maximum Compensation Schedule, Appendix A.2• Sub & Vendor-Actual Cost Not to Exceed (plus markup)• Laboratory Analytical Rates• Equipment Rental Rates (individual) • Drilling Rates• No Change in Invoice Requirements (>$2,500 or +CO)

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COMPENSATION & PRICE SCHEDULES New & Modified Work Book Templates (Appendix A.1)

• Pump Test or Multi-Phase Pilot Test (in-house) • Changed base hrs 12 to 10, kit 120% to 100%, excluded permit hrs and NPDES application fee, and may now task in any combination of whole or partial days (1/10 day)

• Air Sparging +/or Vapor Extraction Pilot Test (in-house) • Merged prior separate single or combined templates, changed base hrs 14 to 10, kit 140% to 100%, excluded permit hours, and may now task in any combination of whole or partial days (1/10 day) • Monthly O&M Visit

• Can be used for in-house inspection/evaluation of DEP- owned equipment not located at subject property for potential re-use reservation (do not use for subcontractor)

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COMPENSATION & PRICE SCHEDULES• RAI Monthly Allowances (S, M & L)• Added water level measurements

• Proposal Preparation• Excluded for LTNAM work orders or when only task is RAP, RAPM or continuation of on-going NAM or PARM

• Site Health & Safety Plan• Must be comprehensive and not be allowed more than once per contractor except in extenuating circumstances.

• Notice of Discovery of Contamination Package• Includes copies of existing contaminant plume maps

• Drilling Setup• Now 1 & 2 person options with corresponding 1 or 2 person kit, changed 2 hrs to 1 hr /person and 20% to 10% kit, does not apply to well abandonment or DPT , but may apply to drilling w/auger attachment only of DPT rig

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COMPENSATION & PRICE SCHEDULES• Soil Boring for Soil Screening or Piezometer

Installation (all depths), and Well Installation, Single or Double Cased (up to 40 ft)• Now 1 & 2 person options with corresponding 1 or 2 person kit

• Recovery or Multi-Phase Well Installation, Single Cased, Air Sparging/Injection Well Installation, and Soil Vapor Extraction Well Installation (all up to 40 ft) • Now 1 & 2 person options with corresponding 1 or 2 person kit, added multi-phase wells, added injection wells, changed MW installation kit to piezometer or remediation well installation kit, excludes TOC survey if applicable, includes ½ hr for well development

• Well or Piezometer Abandonment• 1 person, added 10% modified level D and 10% per diem

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COMPENSATION & PRICE SCHEDULES• Well Sampling w/Water Level and Area Survey• Now 1 & 2 person options with corresponding 1 or 2 person kit

• Oversight, Oversight Kits and Per Diem• All but per diem may be tasked in any combination of whole or partial days (1/10 day)• Per diem requires > 1 consecutive day of field work.• Oversight kit has soil assessment kit for 2 persons less per diem and is used field work includes sampling requiring sampling/testing equipment • Oversight Allowance (kit) has vehicle and modified level D for 2 persons and is used when sampling/testing equipment is not required

• General SA Report• Changed 25% to 20%, not used >SAR approval, $10K cap

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COMPENSATION & PRICE SCHEDULES• Letter or NPDES Report

• Though limited to quarterly, includes 3 monthly discharge monitoring reports on DEP form 62-620.910(10)

• O&M Annual Report• Must be signed and sealed by registered P.E.

• RAP or RAP Mod, All Levels, Full and Limited Scope• Must be signed and sealed by registered P.E. and no proposal prep allowed if only scope of work

• Construction Drawings and Specifications• Generally not allowed in conjunction with SR WOs

• Long Term Natural Attenuation Plan• For LTNAM only, no proposal prep if only scope of work

• Remedial Action Interim & General & Other Reports • Use depends on level of effort, also see SOP section 5.8.3 for template report options for SSA during RA phase

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COMPENSATION & PRICE SCHEDULES• Template Equipment Kits (18)• All kits except In-House RAC and Free Product Recovery split into 1 and 2 person options.• Added Oversight Kit (w/equipment) and Oversight Allowance (without/equipment), both cover 1 or 2 persons• Added wash tubs, garbage cans/bags, rake, sample labels and step ladder to example expendables list

• Template Report Options for SSA During RA Phase• Section 5.8.3 – Four template report options based on SOW that do not require backup spreadsheet• RA Interim Report (H-20) - use directly • RA General Report (H-21) - use directly• Soil Source Removal Report (equivalent) - enter this amount in Other Report Type (H-26)• General SA Report (equivalent) - enter this amount in Other Report Type (H-26), same $10K cap per WO

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COMPENSATION & PRICE SCHEDULES Cost of Living Rate Adjustment

• Last adjustment February 2008 using US Dept. of Labor CPI-U-South average cost index data for 2007

• Change in CPI-U-South average index data for 2011 compared to 2007 used for all FC templates and most MC schedule rates• Adjustment = + 9.11%

• Drilling rate maximum compensation schedule recently adjusted in September 2011 using CPI-U-South average index data for first half of 2011, now bring up to others• Adjustment = + 0.63%

• Lab rate maximum compensation schedule• Adjustment = - 10% • Exception for Priority Pollutant Extractable Organics (water & soil)

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SUBCONTRACTORS & VENDORS Switching of Subcontractors & Vendors (Section 5.9.3)

• Added requirement in SOP (pre-existing in WO terms & conditions) that first tier subs and vendors may not further subcontract, assign or transfer any work > $2,500 without prior written notice to and/or approval from DEP using VCO (notice if covered by FCT or MCS)

• All such requests from subs & vendors must be made through prime contractor

• Under certain conditions when low quote sub/vendor cannot perform/provide, may use next lowest if cost is within 5% or agree to match low quote

• Cannot substitute entity not in original solicitation, if ∆ in scope, requires new solicitation (incl. same parties)

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SUBCONTRACTORS & VENDORS Soil Source Removal Quote Form &

Instructions (Sections 5.9.3 & 9.4)• New versions effective 12/1/11• Not for all or partial in-house SRs (BU

spreadsheet)

Payment and Markup of Subs/Vendors (Sections 5.5 & 5.8)

• Based on Actual Cost (not to exceed MC schedule)

Drilling Rate Schedule OK for Auger Attachment Work Only Using DPT Rig (Sections 5.8.1, 5.9 & 5.10)• DPT with Auger Memo, January 2011, Appendix

A.2.4

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TECHNICAL ISSUES & DELIVERABLES Analytical Requirement for NPDES

Permits (Section 7.6.2)• New docs in Appendix G.6 for clarification of

analytical requirements of generic NPDES permit for petroleum contaminated sites and copy of generic permit

Analytical Testing for Priority Pollutants (Section 9.2)

• New guidance document in Appendix H.9 on priority pollutant volatile and extractable organics

P.E. On-Site Oversight (Section 5.6.3)• Approved only for licensed professional engineers,

others providing feedback to P.E. not on site covered by standard oversight

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TECHNICAL ISSUES & DELIVERABLES Institutional Controls (Section 9.3.5 & 11.3)

• Updated web link to DWM IC info, forms and registry

• New DEP acknowledgement of intent to propose institutional controls letter in Appendix I.5.3

Deliverables (Sections 6.4.5 & 7.6)• Teams 1-6 and select LPs - 1 copy paper and 1

copy electronic copy (.pdf), up to 10 MB by e-mail • Select deliverables also required in original

updatable electronic format• Professional land survey, typically AutoCADD (original and each update)• Maps & tables and as-built drawings (upon DEP request)

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TECHNICAL ISSUES & DELIVERABLES Technical Review Comments (section

7.16)• Requires comments and concerns resulting from

review of technical documents to be in writing and sent to file (meetings are OK but in lieu of comments) • Referenced new DWM guidance for requests for

additional information (RASAs) and remedial action plan addenda (RAPAs) in Appendix H.1

Transfer of Responsibility of MWs for Use on Non-Eligible Discharges (Sections 1.2.5 & 9.3.7)• MW transfer agreement/cover letter in Appendix

C.10

LSSI & LTNAM (sections 1.2, 1.4 & 9.8)

• Procedures in Appendix C.13 & C.14

• New LTNAM plan template

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MISCELLANEOUS PROCEDURES Off-Site Access (section 7.9)• New separate sample access agreements for pre-

approval and State cleanup contractors and instructions in Appendix G.7 (very different-statements in SC version only apply to State selected contractors)

• SOP text and appendices stress that these sample agreements are NOT required by DEP and only offered as a resource

Contractor Selection/Designation • Added to section 2.1 - contractor selection is

limited to State cleanup when Owner/RP is unable to pay for items required by eligibility

• New guidance memo in Appendix D.2 (COs/judgments)

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MISCELLANEOUS PROCEDURES• Added to section 1.2.6 - significant and recurring

non-compliance with storage system regulations may also result in loss of owner/RP’s right to select the cleanup contractor

• New notification of transfer to State cleanup letter in Appendix D.1

• Corrected CDF form to match SOP - no more than two switches in any 12 month period

• CDFs for LSSI sites must have cover letter or otherwise clearly indicate intent for LSSI

Disclosure of Contractor Owned Property (section 7.15)

• Clarified text to match existing WO terms & conditions

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MISCELLANEOUS PROCEDURES Disclosure of Contractor Owned Property

(cont.)• Contractors must disclose any financial or ownership

interest they (or any entity that they have an ownership interest in or that have an ownership interest in them) may their Work Order proposals prior to execution of the Work Order stating the specific nature of the interest in the property and who holds that interest.