The U.S. EPA has been reimbursing local governments for hazmat responses since 1986, but it seems that many LEPCs and other eligible groups are still unfamiliar with the program.  From the LGR website: “In the event of a release (or threatened release) of hazardous substances, EPA may reimburse local governments for expenses related to the release and associated emergency response measures.  The Local Governments Reimbursement (LGR) Program provides a ‘safety net’ of up to $25,000 per incident to local governments that do not have funds available to pay for response actions.”  So with over $3 million in reimbursements awarded to date, how do you get your money back?  It really is not all that complicated, but first we need a basic understanding of the relevant terms and requirements.

Who is eligible?

EPA specifies, “if you are the governing body of a county, parish, municipality, city, town, township, Federally recognized Indian tribe or general purpose unit of local government, you are eligible for reimbursement.”  This definition does NOT include States.  The applicant must have jurisdiction over the event and the response, and if multiple jurisdictions respond the application for reimbursement can be combined.  The applicant cannot be the responsible party even if it is the responding jurisdiction.  You can’t get paid to clean up your own mess.

What is a “hazmat?”

EPA requires that the substance of concern be designated as a hazardous substance under CERCLA.  This is a very broad list, and the most common products NOT covered are crude oil, petroleum products or natural gas.  It DOES include biological agents such as anthrax.  Most people think of large events such as tanker crashes, derailments and releases from fixed facilities, but the LGRP also covers many common responses ranging from mercury spills at schools to meth labs to “white powder” calls investigated as potential bio-agents.

What costs are covered?

Reimbursement does not cover “local funds normally provided for a response.”  Once the existing budget for response is depleted, costs beyond that can be reimbursed, including overtime, “unanticipated materials and supplies,” disposal costs, equipment rental or lease, replacement of damaged equipment, laboratory or technical consulting costs etc.  Routine costs might be eligible if the jurisdiction experiences more than expected response activity and has depleted their budget.  For example the annual budget covers one or two responses, and you have already had four.  Remember that a “threatened release” is a covered event, so reimbursement can be sought even if the white powder turns out to be soap, or the abandoned drum turns out to be used oil, as long as the initial threat reasonably could have been a covered hazardous substance.

What about other cost recovery sources?

The applicant must document attempts at all other available sources of reimbursement.  The obvious place to start is reimbursement from the responsible party (RP).  Many communities have cost recovery ordinances to support this, but even without those, the National Contingency Plan (NCP) at 40 CFR 300.700 and CERCLA 107(a) both require RPs to compensate local government authorities for “appropriate and reasonable” costs related to a hazardous substance release.  Other potential sources of recovery include RP and response agency insurance carriers.

How long can I wait?

The application must be submitted within one year of the “date of response completion.”  That would be the latest of response actions, receiving sample results and reports, completing disposal activities etc.  EPA also recommends waiting until at least 60 days after attempting cost recovery from other sources.

Is there a limit?

Each incident is eligible for up to $25,000.  There is no limit on the number of applications that a jurisdiction may submit, except that only one application can be made per incident.  To date the program has never exhausted its funding, so valid applications are almost certain to succeed.

What documentation is required?

The application includes a detailed Cost Breakdown Table.  Per EPA, “All costs for which reimbursement is being requested must be listed and supporting documentation (e.g., invoices, sales receipts, time sheets, or rental agreements) must be attached.”  Keep good records.  Get familiar with the process, and assign a specific person(s) to this task as soon as the response begins.  It will pay off with a thorough and accurate application.  The local government’s highest-ranking official, such as Mayor, City Manager, County Judge or head of a federally recognized Indian Tribe, must sign and certify the application package.

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Dr. Scott Harris is the Senior Risk Manager for IESO, LLC.  His experience covers over 27 years of Environmental, Health and Safety Management in Federal and State government, consulting, general industry and University instruction.  He received his Ph.D. in Environmental Science, with a specialization in Disaster and Emergency Management, from Oklahoma State University, and holds degrees in Geology (B.S.) and Public Health (MPH) from Western Kentucky University.  Before joining IESO Scott was a Federal On-Scene Coordinator for EPA Region 6 and a member of their Emergency Readiness Team.  He held DOD “Top Secret” and DOE “Q” security clearances, and directed multi-agency emergency response, planning and recovery activities for chemical, biological and radiological releases and exercises within the five-state region.

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