* EPA suggests 10 clean-up options for smelter site * Alcoa expects to take $85 mln charge in Q3 for work * Stock up slightly Oct 1 Aluminum company Alcoa Inc said on Monday it expects to record a charge of about $85 million in the third quarter, related to an environmental clean-up of a river near one of its U.S. smelters. The company confirmed that the U.S. Environmental Protection Agency (EPA) released a Proposed Remedial Action Plan (PRAP) for the Grasse River, close to Alcoa's Massena smelter in northern New York state, near the Canadian border. Alcoa has worked with the EPA and other agencies to evaluate remedial alternatives to address elevated levels of polychlorinated biphenyls (PCBs) in fish in the river, it said. The alternative proposed by the EPA is one of 10 clean-up options evaluated in an analysis that Alcoa submitted. The PRAP is now open for public comment until November 15, after which the EPA will issue a final decision as to which method of cleanup to adopt. Alcoa said the majority of funding for the project will be spent between 2016 and 2020. The estimated cost for the proposed alternative is within the range Alcoa has previously disclosed. As a result, Alcoa expects to record an associated after-tax charge of about $85 million, or 8 cents per share, in its third quarter 2012 results. A company spokeswoman said Alcoa has already spent over $200 million for clean-up operations following the use of PCB's at Massena as fire retardants in the 1950's and 60's. Alcoa stock was up 6 cents at $8.91 in afternoon trading on the New York Stock Exchange.