United States Environmental Protection Agency Off ice of Solid Waste and Emergency Response Directive 9225.3-01 FS November 1989 & EPA REIMBURSEMENT TO LOCAL GOVERNMENTS FOR EMERGENCY RESPONSE TO HAZARDOUS SUBSTANCE RELEASES Office of Emergency and Remedial Response Emergency Response Division OS-210 Quick Reference Fact Sheet The Comprehensive Environmental Response, Compensation, and Liabilty Act (CERCLA), originally enacted in 1980, provides broad Federal authority and resources to respond directly to releases or threatened releases of hazardous substances that may endanger human health or the environment. The original $1.6 billion Hazardous Substance Response Trust Fund (the Super-fund) was designed to pay for the cleanup of releases of hazardous substances and uncontrolled hazardous waste sites. EPA is primarily responsible for implementing the Superfund program. On October 17, 1986, the President signed into lav/ the Superfund Amendments and Reauthorization Act of 1986 (SARA). These amendments authorize an $8.5 billion Superfund and broaden the Federal Government's response authority. Section 123 of the new law authorizes EPA to reimburse local governments for expenses incurred in carrying out temporary emergency measures in response to hazardous substance threats. These measures must be necessary to prevent or mitigate injury to human health or the environment EPA published an interim final regulation for reimbursing local governments in the Federal Register on October 21,1987. This fact sheet provides a summary of the requirements and procedures set forth in this regulation, and supersedes the October 1987 Fact Sheet. WHAT IS THE INTENT OF THE REIMBURSEMENT PROGRAM? The intent of the reimbursement program is to alleviate significant financial burden on a local government resulting from temporary emergency measures taken in response to hazardous substance threats. Temporary emergency measures may include such activities as erecting security fencing to limit access, responding to fires and explosions, and other actions that require immediate response at the local level. EPA will distribute the reimbursement money to those applicants who demonstrate the greatest financial burden. The law specifies that not more than 0.1 percent of the total amount appropriated to the Fund be used for local government reimbursement. This represents a maximum of $8.5 million over a four-year period, or approximately $2 million per year for all requests received nationwide. WHO CAN REQUEST REIMBURSEMENT? Any general purpose unit of local government that incurs costs in response to a release or threatened release of hazardous substances after the effective date of the regulation may apply for reimbursement. Reimbursement is available only to local ------- governments (e.g., a county, parish, city, municipality, township, or federally- recognized Indian Tribe). States are not eligible for reimbursement for temporary emergency measures and no State may request reimbursement on its own behalf or on the behalf of political subdivisions within the State. Only one request for reimbursement will be accepted for each hazardous substance emergency requiring immediate response at the local level. When more than one local agency has participated in such a response, those agencies must determine which single agency or jurisdiction will submit the request on behalf of them all. Since funds for this program are limited, EPA may not be able to reimburse local governments for all responses that may qualify. WHERE CAN APPLICATIONS BE OBTAINED? An application package can be obtained by contacting the RCRA/Superfund Hotline at EPA Headquarters. The toll-free telephone number for the Hotline is 1-800-424-9346. The application package contains detailed, line-by- line instructions for completing the application. WHEN SHOULD REIMBURSEMENT REQUESTS BE FILED? Reimbursement requests must be received by EPA within six months of the date of completion of the response for which reimbursement is being requested. If, however, a cost recovery action is pending, EPA may waive this deadline. EPA recommends that applications be submitted as soon as possible after completion of the response, since response information and reconstruction of records becomes more difficult as time progresses. WHAT COSTS ARE REIMBURSABLE? All costs for which a local government is seeking reimbursement must be consistent with CERCLA and Federal cost principles outlined by the Office of Management and Budget. In general, EPA will consider reimbursement for costs of such items as disposable materials and supplies used during a specific response; rental or leasing of equipment used for specific response; special technical services and laboratory costs; and services and supplies purchased for a specific evacuation. Reimbursement, however, must APPLICATION AREAS REQURING SPECIAL ATTENTION To facilitate application evaluation, please pay special attention to the following: • Reimbursement requests must be received by EPA within 6 months of the "date of completion" of the response, unless cost recovery efforts are underway. For this program, the "date of completion" is when all field work has been completed and all project deliverables have been received by the local government. • The application should include the background and current status of cost recovery efforts. It must be clear that all available sources of cost recovery (PRPs, Insurance, State, etc.) have been or are being pursued. A copy of all related correspondence should also be included. Potential cost recovery sources should have a minimum of 60 days to respond before an LGR application is filed. • The application must include a Detailed Cost Breakdown Table with supporting documentation (invoice, sales receipts, rental agreements, etc.). • The application must be signed by the local government's highest official (the chief executive or his or her delegate) unless signature authority is delegated and an official letter of delegation accompanies the application. ------- not supplant local government funds normally provided for emergency response. All reimbursement applications must be accompanied by cost documentation such as invoices, sales receipts or leasing agreements. Section 310.40 of the interim final regulation contains more information on allowable costs for reimbursement. HOW WILL REIMBURSEMENT REQUESTS BE EVALUATED? EPA has developed a formula for determining financial burden that is based upon the ratio of eligible response costs to an applicant's per capita income adjusted for population. EPA also may consider other relevant financial information provided by a local government. After receiving completed applications from local governments, EPA will screen each application for compliance with basic reimbursement criteria and filing procedures. Requests for reimbursement must demonstrate that responses comply with CERCLA, the NCP and where applicable, the local comprehensive emergency response plan completed under the Emergency Planning and Community Right- to-Know Act of 1986. Each application will be evaluated on its own merit, and with respect to the financial burden demonstrated by other requests. EPA will ensure that costs for which reimbursement is being sought are allowable and do not supplant local funds normally provided for emergency response. Further guidance on evaluation of reimbursement requests can be found in section 310.60 of the interim final regulation. Based upon the financial burden ranking for each request and the funds available for reimbursement, a request may be reimbursed, denied or held over for reconsideration. A request may be reconsidered during a subsequent review period if it represents a significant financial burden but scores lower than other requests during a particular review period. HOW MUCH CAN BE REIMBURSED? CERCLA specifically limits reimburse- ment to $25,000 per single response. This $25,000 cap plus the limited availability of funds for the program may not allow EPA to reimburse local governments for all response costs that may qualify. FOR FURTHER INFORMATION For general information on CERCLA and reimbursement application packages contact: RCRA/Superfund Hotline 1-800-424-9346 (toll free) 1-202-382-3000 (in the Washington, DC area) For specific information on the Local Government Reimbursement Program contact: LGR Project Officer Emergency Response Division (OS-210) U.S. EPA 401 M Street, S.W. Washington, D.C. 20460 ------- |