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originally enacted in 1980, provides broad Federal authority and resources to respond directly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
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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.
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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
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